AARP and J.P. Morgan Asset Management on Thursday announced the formation of a new $40 million investment fund that will provide capital to companies focused on improving the lives of people age 50-plus, with a primary focus on helping seniors age in place.
The AARP Innovation Fund will make direct investments in early- to late-stage companies developing innovative products that improve older adults’ capacity to age at home, convenience and access to health care, along with measures targeted at preventative health.
“AARP has a strong history of leading innovation by changing the marketplace,” said AARP CEO Jo Ann Jenkins in a written statement. “Our members are disrupting aging in a variety of ways and so is AARP. The AARP Innovation Fund is the next evolution of our ability to fulfill our social mission by making sure that the needs and interests of those 50-plus are well represented by products and companies.”
In the aging in place arena, the Fund will encourage the development of products and services that leverage technology to enable older adults to continue living in their homes both safely and affordably. Such solutions to foster aging at home may include the need for home sensor activity tracking; mobility assistance; meal plan delivery and cooking solutions; social communities and physical augmentation devices.
The Fund will also support the advancement of products and services that help age 50-plus consumers adopt positive health behaviors such as telemedicine, consumer diagnostics, consumer care transparency tools, among other solutions.
As for preventative health innovation, the Fund will seek to expand the market for products and services that help older adults prevent the onset of serious health conditions by focusing on diet and nutrition management; stress and emotion management or therapy; fitness apps and programs; integrated health engagement incentives; as well as cognitive and brain health initiatives.
As the sole third-party investor in this fund advised by J.P. Morgan Asset Management, AARP has partnered with the company’s Endowments & Foundations Group and its Private Equity Group to source and evaluate potential investments for the Fund.
In addition to financial support, companies receiving investment from the Fund will have access to AARP’s knowledge and distribution channels to help age 50-plus consumers have the opportunity to benefit from these new products and services.
With assets under management of $1.8 trillion, J.P. Morgan Asset Management is well-positioned to help AARP crack into the tremendous buying power of the 50-plus consumer market, which is responsible for at least $7.1 trillion in annual economic activity.
“Our knowledge of the market, combined with AARP’s expertise on the wants and needs of those 50-plus, is a powerful combination that will help the AARP Investment Fund invest in companies in the consumer healthcare space,” said Kathy Rosa, managing director and portfolio manager in J.P. Morgan Asset Management’s Private Equity Group, in a written statement.
AARP intends to help companies working with its Innovation Fund the opportunity to grow their bottom line, while also increasing revenue and improving the lives of aging Americans.
“The Innovation Fund showcases AARP’s ability to generate bigger, bolder solutions that will disrupt aging, increase our impact on and drive relevance for the 50-plus population,” AARP’s Jenkins said.
Written by Jason Oliva