Investing in senior living and care in 2023 is going to be more difficult than it was in 2022, experts said Tuesday during a session of the 2022 What’s Next Longevity Innovation Summit, a hybrid event in Washington, DC. Labor and other economic factors have stretched long-term care thin, speakers said during the session moderated by Mary Furlong, CEO and founder of Mary Furlong & Associates.
“Personally, I like markets like this. …Some of the best returns in decades have come in two to three years after a downturn in the market,” Robert Garber, partner at 7wire Ventures, commented. “We all know it’s painful.”
John Hopper, CEO of Ziegler Link•Age Funds, agreed that it’s going to get worse before it gets better.
“There are still pockets of opportunity out there for investor groups, portfolio companies, in terms of cash,” he said.
At the same time, according to Mel Barsky, director of business development at CABHI, the senior living sector is “notoriously resistant to recession. So, yes, it might get a little harder than it was in ’22, but if you look at what’s already happening in many other sectors, it’s actually pretty good. I’m actually hopeful that 2023 still sees a lot of activity, a larger share of activity.”
Furlong noted that one factor in investing is getting the business model right. Technology, data and value-based services are important to investors as they look to the future. Additionally, the panelists said, senior living and care investors are looking to the next generation to move into senior living and care communities and facilities, which means adding services to help them age in place there.
“It’s much more than the capital,” Barsky noted.
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