To Reach It’s Potential, Infra Should Address Its Liquidity Problem
dhillMon, 07/17/2023 - 09:00
A&M Managing Director, Jay Moody, is featured in the Infrastructure Investor article, "To Reach Its Potential, Infra Should Address Its Liquidity Problem."
The author notes that in order to address the tension between long-lived assets and investor needs, the infrastructure asset class needs to modernize.
Exacerbated by difficult market conditions, the asset class is facing fundraising challenges as investors shift away from long timelines to address their varying liquidity needs. In order to allow for exits at more optimal times or provide a vehicle for investors seeking liquidity to cash out of their investments, alternative approaches have gained traction.
“Sellers may not be getting the valuation that they’re seeking in the current environment, so continuation funds have been a manner for sponsors to continue to optimize the asset and hold it for even longer than the fund life,” said Jay Moody.