In the latest ION Influencers Fireside Chat, Wandy Hoh, Head of Secondaries at Macquarie Asset Management, shared deep insights on the evolution, opportunities, and challenges in the global secondaries market, with a special focus on infrastructure secondaries. The discussion spanned everything from investor motivations and talent trends to the growing impact of AI and data in investment decisions.

1. The Evolution of the Secondaries Market

Wandy Hoh traced her 25-year journey from private equity (PE) secondaries to infrastructure secondaries, noting how the market has evolved from simple LP-led transactions to a highly specialized ecosystem.
Key changes include:

• The rise of GP-led continuation vehicles (CVs).

• Increased sector specialization in credit, real estate, and infrastructure.

• Greater participation from both large asset managers and specialist funds.

Hoh emphasized that infrastructure secondaries have grown “tremendously in the past five years,” driven by demand for stable, long-term assets.

2. Why Secondaries Appeal to Investors

According to Hoh, investors — both institutional and private wealth — are drawn to secondaries for four main reasons:

1. Instant diversification: Exposure to 100+ assets in one transaction.

2. No J-curve effect: Immediate cash flow as assets are already mature.

3. Shorter investment duration: Often half the holding period of primary funds.

4. Early distributions: Investors benefit from earlier exits and returns.

This makes secondaries a compelling portfolio diversification and liquidity tool in uncertain markets.

3. GP-Led Continuation Vehicles: Here to Stay

A major theme was the rise of GP-led secondaries as GPs seek liquidity amid slower M&A and IPO markets.
Hoh noted that CVs have become “another tool in the GP’s toolkit” for managing portfolios and delivering DPI (distributions to paid-in capital).

While she expects the GP-led market to keep expanding, Hoh believes LP-led transactions will remain essential for portfolio rebalancing and liquidity management.

4. Evergreen Funds and the Wealth Channel

Looking ahead, Hoh predicted a continued proliferation of evergreen vehicles, particularly as private wealth investors increase exposure to private markets.

“There is space for both evergreen and closed-end vehicles — it’s about investor preferences,” she said.

5. Creativity and Market Innovation

Hoh described the recent wave of innovation in secondaries as a collective market response to liquidity pain points, such as slower distributions and fundraising.

“Creativity comes from solving real problems — the slowdown in liquidity and fundraising is forcing all of us to think differently,” she said.

6. Talent, Data, and the Role of AI

The conversation turned to talent and technology.
Hoh highlighted a surge of interest among graduates in secondaries — a field once obscure 25 years ago.

On data, she stressed that critical thinking — not just data collection — will define competitive advantage:

“AI will make data easier to collect, but the differentiator is the quality of questions we ask.”

Curiosity, she added, is the most important trait in hiring: “The best critical thinkers are always the most curious.”

7. Macro Trends and Market Outlook

Hoh remained bullish on the U.S., citing its strong business culture and resilient fundamentals, while noting that geopolitics remains the top risk keeping investors awake at night.
She also expects both large diversified managers and specialized boutiques to thrive, given the vast capital flowing into private markets.

8. Valuations and Sector Opportunities

On valuations, Hoh underscored that “valuation is ultimately a view on future growth.”
Even seemingly overvalued sectors like AI may justify their premiums if investors believe in long-term transformational impact.

Key Takeaways

• Infrastructure secondaries are gaining traction as a mainstream asset class.

• GP-led deals and evergreen funds are reshaping liquidity solutions.

• Data-driven insights and critical thinking will separate leaders from followers.

• Diversification, shorter duration, and early returns make secondaries increasingly attractive to both institutions and private wealth.

Key timestamps:

00:07 Introduction to the Fireside Chat
01:17 Evolution of the Secondaries Market
02:49 Specialization in Secondaries
05:42 Investor Appeal of Secondaries
08:09 Investor Education and Future Questions
11:00 Creativity in Secondary Solution
12:44 Assessing GP Motivations
15:07 Skills Required for Secondary Teams
18:15 Data Utilization in Secondaries
20:42 Future of Asset Management
22:33 Navigating Macro Trends
24:23 Investment Strategies by Region
25:03 Understanding Valuations
26:12 Conclusion and Final Thoughts