LP demand for liquidity in the wake of public market volatility and amid a continued slowdown in distributions from existing portfolios is driving unprecedented levels of infrastructure secondaries deal flow, Andrea Echberg, our Global Head of Infrastructure, recently told Infrastructure Investor.

Moreover, she highlighted that this surge in deal opportunities, coupled with a shortage of buy-side capital, means there is a supply-demand imbalance that continues to underpin secondaries entry discounts, even for high-quality infrastructure portfolios.

“We’re seeing 5-15 per cent discounts at the outer edges. Last year, we did find some transactions up to 20 per cent discounts on some portfolios. The rate of deal flow we’re seeing makes it easy to sustain those levels, and for discounts to possibly widen slightly. The discounts are not coming from the fact secondary buyers are concerned about the portfolios, it’s much more a supply-demand imbalance in terms of the available capital and scaled buyers for infrastructure secondaries.”