The infrastructure secondaries market is experiencing explosive growth, due in large part to an increase in its popularity with institutional investors.
Macquarie Asset Management, which has been ranked the world’s largest infrastructure manager, predicts infrastructure secondaries’ assets under management could reach between $50 billion and $67 billion in 2027, up from $18.6 billion in 2021.
Infrastructure secondaries are investment instruments that enable investors to gain access to portfolios that are both mature and yielding. The drivers behind such rising interest in infrastructure secondaries may stem from the unique characteristics of such investing, says William Greene, a managing partner in Stafford Capital Partners’ infrastructure division. Among those characteristics are acquisition of quality; derisked assets at good value; diversification across sectors, vintages and risk characteristics; swift deployment; and little to no blind pool risk.