SAN FRANCISCO: The global financial crisis created a paradigm shift in the perception of risk. The unprecedented collapse of most traditional asset classes prompted investors to look further afield for truly alternative forms of investment, immune from the short-term impact of market movements.
Additionally, the subsequent low interest rate environment has also resulted in a major quest for income, driving the prices of many yielding assets well above fair value. Nets have been cast far and wide as investors sought to address these issues.
The skilled nursing home sector, a relatively unknown but growing space, remains the preserve of a small band of investors. But it is now being increasingly recognized for its low correlation to other assets, its low volatility characteristics, and its high and sustainable level of income.
The skilled nursing home sector’s emergence as an alternative form of investment is underpinned by attractive and indisputable demographic trends, such as longevity and an aging population…
But even in the care sector, there is now too much cash chasing too few quality assets…