Several asset classes are expected to grow their secondaries presence in the coming years, including infrastructure.
As of 1 July, there were 14 funds in market that invest in infrastructure secondaries, according to Secondaries Investor data. Combined, the funds are looking to raise at least $7.7 billion.
As only half of these funds’ targets are disclosed, the ultimate aggregate number will be higher.
Of the seven funds with disclosed their targets, five are looking to raise at least $1 billion, according to Secondaries Investor data.
Blackstone’s Strategic Partners Infrastructure IV has raised the most so far with at least $1.8 billion in disclosed or reported commitments.
Along with credit secondaries, infrastructure continues to represent larger market shares in LP-led deals as buyers developing specialised strategies and dedicated pools of capital, Evercore noted in its H1 2024 Secondary Market Review. The asset class accounted for 9 percent of secondaries volume in the first half of the year, or $3.7 billion, Evercore noted.
For full year 2023, infrastructure had $11 billion of volume – a figure that is expected to rise to $13 billion by the end of this year and $29 billion in 2030, according to PJT Partners’ H1 2024 Secondary Market Insight report.
PJT expects exposure to decarbonisation, transportation and data centres to guide capital allocation. Exposure to inflationary and regulatory risks could pose challenges for this area of the market.
– Zak Bentley and Kalliope Gourntis contributed to this story