HarbourVest Explores Middle-Market Infrastructure Opportunities with Secondary Investments

HarbourVest Partners LLC is focusing on the potential within the infrastructure middle market, advocating secondary investments as a means to capitalize on this sector. As the definition of infrastructure broadens and evolves, particularly with trends like technological advancements and energy transitions, the proliferation of emerging managers in the middle-market segment has become noteworthy. This market, which represents nearly 95% of infrastructure transaction volume, offers significant opportunities with enhanced liquidity and risk-adjusted returns, outpacing large-cap segments. Middle-market firms often present innovative approaches to value creation and exit strategies, with performance metrics showing superior returns compared to their large-cap counterparts. The article highlights the strategic advantage of secondary investments, emphasizing diversified exposure, risk mitigation through pre-specified asset investments, and price optimization in a liquidity-constrained environment.