From Bloomberg, May 18:
Europe’s Aging Population Is a Money Magnet for Some Investors
- Crematoriums and morticians being bought up by larger firms
- Sector growth linked to rising deaths, shifting cultural norms
Europe’s shrinking population has long raised concerns about its economic prospects. Governments are seriously worried about it. Elon Musk has raised alarm about the trend. But for some, it’s turning into big business.
Private-equity-funded Funecap Idf SAS has spent around €1 billion ($1.1 billion) to buy more than 300 crematoriums and funeral centers mainly in Europe, home to 17 of the top 20 countries with the highest death rates.
The French firm, backed by British financial investor Charterhouse Capital Partners LLP and France’s Latour Capital, is cashing in on the high cemetery costs, mobility needs and religious secularization that have raised the need for incinerations and alternatives to traditional church-driven services.
One in five Europeans is currently 65 years or older. By 2050, it will be closer to 30%. And unlike North America — which is facing a similar population decline threat — Europe has limited space to bury them when they eventually pass away.
“The funeral industry is way more than digging holes,” said Thierry Gisserot, Funecap’s founder and chief executive officer. “It’s an infrastructure play.”....
....MUCH MORE
