Francesco Sparaco, Founding Partner at Threestones Capital, shares his views on the aging population and the increase in healthcare costs becoming crucial demand drivers for healthcare services and healthcare real estate, including long-term residential care facilities, and thus helping European senior housing and healthcare attract more institutional capital.
Can you present your company in a few words?
Threestones Capital Management S.A. is an authorized Alternative Investment Fund Manager (AIFM) headquartered in Luxembourg. The company manages approximately EUR 2 billion in four PERE regulated investment vehicles under the supervision of the Luxembourg financial authorities (CSSF), in compliance with European financial regulations. Founded in 2009, Threestones Capital primarily focuses on real estate investments across Europe, targeting niche asset classes, including nursing homes, in Germany, Italy and Spain. The company’s investors are a diverse mix of private individuals and institutions.
“We believe that healthcare real estate is among those sectors which meet the growing demand for sustainable and ESG-friendly living facilities”
What are the new challenges and opportunities that you identify ?
Despite the recent economic challenges, Threestones Capital, as a player in healthcare real estate and senior living, has observed that investors are increasingly seeking to diversify their portfolios across the living sector. We believe that the European care home market offers a particularly compelling opportunity for generating above average risk adjusted returns secured by long-term leases and increasing demand driven by strong demographic fundamentals. Also, we can notice that ESG investing is becoming more popular, and asset managers who can demonstrate their commitment to ESG principles may attract investors who prioritize sustainability and ethical investing. We believe that healthcare real estate is among those sectors which meet the growing demand for sustainable and ESG-friendly living facilities.
How do you see the future of Luxembourg?
Luxembourg has a well-developed regulatory framework and a business-friendly environment, which is why many multinational corporations have chosen to establish their European headquarters there. Also, Luxembourg has established itself as a leading financial centre in Europe, attracting a diverse range of global investors and financial institutions. As such, many asset managers see Luxembourg as a stable and attractive market for investment opportunities. We hope that the country will maintain its positions as the best market for the fund industry in Europe.