The thesis
Built on what people can’t stop needing.
Everybody needs healthcare. Everybody needs somewhere to live. Everybody needs energy. Those needs do not go away in a recession, a rate shock or a market panic.
The idea in one paragraph
We believe the next five to ten years may bring more economic shocks, not fewer. Rather than trying to predict them, the fund is designed around demand that tends to persist through them: housing for the nurses, technicians, line workers, operators and support staff who keep hospitals, utilities and essential services running. Demand for those services is relatively inelastic: people keep needing them whether markets are up or down. The people who deliver them still need a place to live near where they work.
Three essential pillars
Healthcare
The BLS projects healthcare and social assistance to be the fastest-growing of 20 sectors from 2024 to 2034, at 8.4%, adding about 2.0 million jobs, the most of any sector.1
Housing
Freddie Mac estimates the U.S. housing shortage at 3.7 million units as of Q3 2024.2 Other estimates range from about 3.7 to 4.9 million, depending on method.3
Energy
The EIA expects U.S. electricity demand to rise for four years in a row through 2027, the strongest four-year growth since 2000.4
What this does not mean
Essential demand does not make real estate safe. Property values, rents, financing costs and local economies can all move against an investor, and a fund can lose money. The thesis shapes where we look; it is not a promise of results. See risks.