Partners Group invests record USD 1.2 billion in infrastructure secondaries in twelve months

• Firm completed 13 investments, aligned with its thematic focus areas
• This represented a more than 70% year-on-year increase in the amount invested
• Partners Group was an early mover in the infrastructure secondaries market

Partners Group, one of the largest firms in the global private markets industry, invested a record USD 1.2 billion in infrastructure secondaries on behalf of its clients in the twelve months to 30 September 2024, up more than 70% from USD 700 million in the prior twelve-month period.

The record investment level reflects the increasing opportunity set available in the infrastructure secondaries market. Partners Group’s Infrastructure Partnerships team, which covers GP-led secondary transactions, LP-led portfolio secondaries, and co-investments, completed 13 investments in the twelve-month period^[1]. These investments are aligned with Partners Group’s thematic investing approach, which seeks to gain exposure to assets that are set to benefit from tailwinds around digitization, decarbonization, and new living trends. The investments Partners Group has made this year include: 

• Investment in a GP-led transaction which comprised a fast-growing data center platform in Canada. Partners Group’s knowledge of the sector, track record, and bench of industry advisors made it the partner of choice for the GP
• Acquisition of a LP-led portfolio with 10 underlying assets at a 15% discount to NAV. Partners Group had an established relationship with the underlying GP. The portfolio offered strong value uplift potential and compelling downside mitigation

In its underwriting for infrastructure secondaries, Partners Group applies an asset owner’s perspective, approaching due diligence with the same rigor as it applies to direct investments. This differentiated approach aims to identify business building opportunities within a secondaries portfolio from the bottom up, which enables Partners Group to gain a more thorough understanding of an investment’s potential.

Partners Group was one of the first movers in infrastructure secondaries, making its first investment in 2006. To-date, the firm has completed 55 closed secondaries investments and deployed around USD 3.3 billion in the space^[2].  

Marc Meier, Managing Director, Co-Head Infrastructure Partnerships, Partners Group, comments: “Our integrated infrastructure platform is a huge asset for us when assessing the quality of underlying projects in secondaries portfolios and their inherent value creation potential. It allows us to leverage the institutional knowledge available in joint investment committees across both direct and secondaries investments, as well as our large team of asset managers and operating directors. We invest with a thematic lens, identifying the portfolios and opportunities that have the greatest growth potential.”

Dmitriy Antropov, Managing Director, Co-Head Infrastructure Partnerships, Partners Group, adds: “What sets Partners Group apart in infrastructure secondaries is our focus on the mid-market, which is less crowded than the large-cap space that many other secondaries investors focus on. This has frequently facilitated closer collaboration with sellers and positioned us as a price setter for both GP-led transactions and complicated LP portfolios, often leading to a pricing advantage over other large-cap transactions. With nearly 20 years of experience investing in the space, we have built very strong relationships.”

The infrastructure secondaries market has gained significant momentum, reflecting the expansion of the infrastructure asset class and its increasing maturity. At the same time, more LPs are shifting from building up infrastructure allocations to managing portfolios, turning to the secondary market for liquidity and to adjust exposure.

Partners Group’s global Infrastructure business has USD 26 billion in assets under management across its directs and partnerships divisions.

^[1] Refers to both signed or closed investments made between 1 October 2023 and 30 September 2024.

^[2] To 30 September 2024.