The Silver Economy Gets a Covid Reality Check
- Date: 09-Feb-2022
- Source: Asharq AL-awsat
- Sector:Economy
- Country:Middle East
The Silver Economy Gets a Covid Reality Check
International and Arab News
French care-home operator Orpea was once a bet on better retirement. In an aging society, demand for long-term care would only rise — and so would demand for long-term returns, hence why Canada’s top pension fund bought a 15% stake in 2013. It was going to be the virtuous circle of the “silver economy” in action — retirement as an asset class.
The virtuous circle now looks like a vicious one. After years of growth, some 3.4 billion euros ($3.9 billion) has been wiped off Orpea’s market value — and 492 million euros off Canada Pension Plan Investment Board’s stake — in the two weeks since a bombshell book, “The Gravediggers,” by Victor Castanet, published allegations about mistreatment at its care homes.
The company has swiftly appointed a new CEO and denied the accusations, which include the rationing of adult diapers, and hired two outside firms to conduct an independent inquiry. But the reputational risk has already rattled the sector, with rival Korian down 37% in sympathy. Orpea faces financial and administrative probes from Emmanuel Macron’s government, which has echoed the shock and disgust of angry relatives.
The sector is no stranger to such allegations, but they cut deep after
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