Stafford Infrastructure Diary - Can secondaries navigate an uncertain market?
In this Stafford diaries edition, we will examine the impact of the current macroeconomic forces (such as inflation, interest rate movement and market downturn) both for LP and GP-led infrastructure secondaries:
We will first discuss how the volume of the LP secondaries market, typically driven in a steady state by primary markets growth is being strongly enhanced by denominator effects, with knock-on effects on pricing, before looking at the effect of more specific ESG-driven transactions. On the GP-led side, we will see how the very strong recent growth may be reaching limits in a more discerning environment.
