Care Economy White Paper

The U.S. Care Economy faces growing demand due to demographic shifts, yet remains underfunded and overlooked by investors and policymakers. This white paper highlights opportunities for investors and offers a framework for deploying capital across asset classes to meet these needs. We welcome your feedback on this white paper. Please take a brief survey to help focus our future work.

Key Takeaways for Investors:

1. Untapped Market: The Care Economy is a rapidly growing sector with the potential for high financial returns. Americans spend $648 billion annually on care.11 This makes it a substantial, investable market that spans a wide range of opportunities.
2. Need for Innovation: The care industry has been slow to innovate, but there is increasing demand for technology solutions, such as AI-driven health tools, digital caregiving platforms, and older adult care technology. Investors can focus on companies driving innovation in these areas to unlock growth and improve care outcomes.
3. Multi-Asset Class Opportunities: Investors can diversify their portfolios by investing in different asset classes within the Care Economy. These include public equities, private equity, real estate, and fixed income, each with their own risk / return profile. 
4. Societal and Economic Impact: Investing in the Care Economy is an opportunity to advance gender equity and support economic productivity. Women perform two-thirds of unpaid care work and are the majority of the formal care workforce. Investments that alleviate caregiving burdens, particularly on women, can drive meaningful workforce participation and economic development.
5. Blended Capital Models: Investors should consider philanthropic capital, such as program-related investments (PRIs) and blended capital models, to de-risk early-stage Care Economy investments. These models can help catalyze market-rate capital while addressing urgent societal needs.
6. Policy and Public Investment Gaps: Public investment in care infrastructure has been insufficient to meet growing demand. Strategic private capital can fill these gaps, and investors should be aware of policy changes that could present both headwinds and tailwinds for care-related investments.
7. Demographic Shifts: Demographic shifts, such as an aging population and a shortage of caregivers, are driving increasing demand for care services. While regulatory and funding risks exist, this demand will persist and likely grow, creating significant opportunities for investors.

Supporting the growth of the Care Economy is a tremendous investable opportunity that also happens to have a significant societal impact. By adopting a multi-asset class approach and leveraging both market-rate and philanthropic capital, investors can play a crucial role in addressing the most pressing care challenges of our time. Download our full white paper to explore how your investments can shape the future of the U.S. Care Economy.