Pension consultancy Isio has launched a brand new platform to permit buyers comparable to pension schemes to promote illiquid property extra effectively.
The corporate mentioned it’s responding to demand to promote illiquid property, together with the difficulties sellers face doing so.
It mentioned need to promote illiquid property elevated following the market volatility brought on by the Price range in September 2022, with pension schemes in search of higher liquidity, to rebalance strategic asset allocation, or to arrange for an insurance coverage transaction.
Usually, purchasers have used brokers to promote illiquid property, however that course of is inefficient in nascent markets comparable to personal debt and infrastructure fairness secondaries, Isio mentioned.
It mentioned its new Isio Fund Liquidity Choices platform offers another in these markets by leveraging Isio’s relationships with personal debt and infrastructure fairness secondaries patrons to decrease charges whereas making the method extra environment friendly.
The enterprise mentioned it’s at the moment advising various illiquid property gross sales, throughout personal debt and infrastructure fairness whereas additionally exploring different methods of acquiring liquidity for schemes outdoors of outright gross sales.
Ajith Balan Nair, head of asset class and supervisor analysis at Isio, mentioned: “Personal markets asset courses have offered wonderful sources of other earnings and development for pension scheme buyers in recent times, however the fallout of the LDI disaster and being nearer to the endgame is prompting lots of them to promote.
“Sadly, that is typically simpler mentioned than performed, and the method for exiting illiquid property may be gradual and costly.”
The agency mentioned it hopes to develop the platform over time.
