Investors are increasing allocations to shorter hold secondaries and co-investments, according to Julia Schiffer, Mercer's head of European infrastructure. This shift reflects strong returns in the secondary market, with limited partners seeking more liquid opportunities. The trend underscores growing appetite for infrastructure secondaries as institutions pursue higher internal rates of return.

Julia Schiffer notes that investors are reallocating resources toward these vehicles to enhance portfolio flexibility and access attractive deals. The secondary market has gained traction as a strategic tool for infrastructure investors looking to optimize returns and manage duration risk. With favorable IRRs continuing to attract capital, the sector is poised for further growth in secondaries activity.