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The Rise of Infrastructure Secondaries

The infrastructure secondaries fundraising sector is currently experiencing a surge in activity, driven by several key factors. Prominent financial institutions are actively raising substantial capital for dedicated infrastructure secondaries funds. This growth isn't limited to fund managers; advisory firms are also expanding their teams in this field to meet the rising demand for expertise.

One significant driver behind this trend is the attractive pricing dynamics in the infrastructure secondaries market, offering LPs the potential for higher valuations when divesting their holdings. Additionally, the ongoing energy transition is influencing deal flow, as different buyers, each with distinct sustainability criteria, enter the market.

In conclusion, the infrastructure secondaries sector is poised for robust growth, with projections indicating significant expansion. This favorable outlook is likely to encourage more financial institutions to explore opportunities in this burgeoning subsector in the coming years, making it an area worth monitoring closely for investors and industry observers alike.

All things considered, this is a subsector that appears set to grow. PJT’s prediction is that infra secondaries will more than double in volume to $30 billion by the end of this decade, while Macquarie estimates there will be between $50 billion and $67 billion of infrastructure secondaries assets under management by 2025. Expect more firms to launch dedicated vehicles in the years to come.

Tags

infrastructure, secondaries, private markets

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