Evercore: infra secondaries gained amid overall H1 drop

Total deal volume in the first half fell to around $17bn, according to the advisory firm’s mid-year report.

Deal volume for infrastructure secondaries grew in the first half of the year despite an overall drop in total transactions, according to a survey by Evercore.

Infrastructure accounted for 9 percent of deal volume during the period, gaining ground over private equity which decreased by almost one fifth, and real estate which decreased by almost a third, according to the advisory firm’s H1 2016 Secondary Market Survey Results.

The survey canvassed the views of over 50 respondents.

Global infrastructure needs are expected to top $57 trillion through 2030, according to a report by McKinsey & Company, and the real assets secondaries market excluding real estate could grow at double the rate of the private equity secondaries market, Brett Gordon, a managing director at HarbourVest Partners, told sister publication Secondaries Investor in April.

Evercore estimates total deal volume during the first half fell to $17 billion, a decrease of around 17 percent compared with the same period a year earlier. The figure is the highest so far from advisory firms’ mid-year reports, well above Greenhill Cogent’s $12 billion, Credit Suisse’s $14.9 billion and NYPPEX Private Markets’ $15.7 billion estimates.

The firm also estimates dry powder stands at $70 billion, a record high and almost $15 billion more than in the first half of last year. More than 80 percent of total dry powder is managed by the top 19 players.

Buyers are planning to raise another $30 billion during the second half and into 2017, the report noted.

Limited partnership stakes accounted for almost three quarters of first half deal volume, with GP restructurings comprising 16 percent. Secondary directs, which Evercore defines as assets which are sold without a manager, accounted for the remainder.