With traditional M&A routes remaining largely congested, institutional investors are increasingly turning to the infrastructure secondary market to secure liquidity and rebalance portfolios.
This shift has transformed infrastructure secondaries from a niche tool into a vital deployment engine, with overall . Rather than waiting for traditional exit windows to reopen, managers are utilising the secondary space to recycle capital efficiently into resilient, cash-generating assets.
The rapid pace of capital deployment highlights the strength of the strategy. recently pushed its , anchoring its latest expansion in asset-heavy, contracted UK passenger rail and commercial aviation platforms. This market momentum is equally visible in fundraising, as seen with , which focuses 90% of its allocation on secondary transactions and has already deployed $1.2bn from the fund across 10 transactions involving 254 assets, achieving an average discount of 14% on those deals.
This preference for steady, proven assets over speculative growth is a strategy shared by these institutional managers. Notably, Pantheon, which ranked 28th in the latest , focuses on underwriting rigour over speculative market trends.
As Andrea Echberg, partner and global head of infrastructure at Pantheon, puts it: 鈥淚t鈥檚 more around the detail and the discipline of the underwriting than necessarily what the big themes are. And I think that鈥檚 the challenge that we face today 鈥� sticking to that discipline when there鈥檚 a lot of exuberance about themes.鈥�
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