Infrastructure secondaries

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Infrastructure secondaries: A new way to access infrastructure assets

Mitigation of the J-curve effect

Secondaries investors often gain access to already operating assets, which offers an opportunity to mitigate the J-curve effect partially or fully.

Enhanced diversification

Secondary funds offer an opportunity to create a highly diversified portfolio by manager, vintage, geography, and strategy.

Reduced blind pool risk

Secondaries investors tend to know which assets they are acquiring, which may enhance visibility and reduce the blind pool risk.

Potential growth

Infrastructure secondaries’ assets under management could reach between $US50 billion and $US67 billion in 2025, up from $US18.6 billion1 in 2021.

Liquidity provision

As the secondary market expands, it often acts as a liquidity provider to limited partners and gives greater flexibility to general partners.

1Based on Preqin database, data as of September 2021.