In the rapidly evolving world of private markets, liquidity challenges are reshaping how institutional investors deploy capital. One of the most notable developments is the move by Manulife Investment Management to increasingly acquire infrastructure continuation vehicles (CVs) and secondary assets. This strategy is specifically designed to tackle a growing industry concern: low DPI (Distributed to Paid-In capital).
According to recent reporting from Secondaries Investor, this shift reflects broader structural changes in private equity and infrastructure investing, particularly as exit routes remain constrained and liquidity becomes harder to achieve.
📅 Source & News Timing
- Source: Secondaries Investor
- Published: Approximately 40 minutes before reporting (April 30, 2026)
What Is Driving Manulife’s Move into Infrastructure CVs and Secondaries?
At its core, this strategy is about solving a fundamental mismatch in private markets: investors want cash returns, but exits are delayed.
Understanding the Context
Private market funds—especially infrastructure—typically have long investment horizons. However, recent macroeconomic conditions have slowed down exits such as IPOs and M&A transactions. As a result:
- Investors are experiencing lower-than-expected distributions
- DPI metrics are under pressure
- Liquidity concerns are rising across portfolios
This is where continuation vehicles and secondaries come into play.
What Are Continuation Vehicles (CVs)?
Continuation vehicles are structured transactions where a fund’s existing assets are transferred into a new vehicle, allowing:
- Existing investors (LPs) to cash out
- New investors to buy into mature, de-risked assets
- General partners (GPs) to extend ownership timelines
In simple terms, CVs provide a bridge between holding assets longer and generating liquidity today.
What Are Secondaries?
Secondaries involve the buying and selling of existing private market stakes. These can include:
- LP interests in funds
- GP-led transactions (like CVs)
- Direct asset acquisitions
The secondary market has become a critical liquidity mechanism, especially in periods of reduced exit activity.
According to Manulife’s own insights, the secondaries market has experienced record growth and is expected to expand further in volume and importance.
Why Low DPI Is a Growing Problem
1. Slower Exit Environment
Since 2022–2025, global markets have seen:
- Reduced IPO activity
- Lower M&A volumes
- Valuation uncertainty
This has significantly slowed capital distributions.
2. Investor Pressure
Institutional investors—such as pension funds and insurance companies—depend on steady cash flows. When DPI drops:
- Portfolio rebalancing becomes difficult
- New commitments may be delayed
- Liquidity mismeetings intensify
3. Fundraising Challenges
Low DPI also impacts fundraising. Investors prefer managers who can demonstrate:
- Strong realizations
- Reliable distributions
- Efficient capital recycling
Manulife’s Strategy: Buying CVs and Secondaries
A Liquidity Solution with Strategic Benefits
Manulife’s approach focuses on acquiring:
- Infrastructure continuation vehicles
- Secondary stakes in mature assets
This provides multiple advantages:
✅ Immediate Cash Flow Potential
Infrastructure assets often generate stable income streams, making them attractive for secondary buyers.
✅ Discounted Entry Points
Secondaries can sometimes be acquired below NAV (net asset value), improving return potential.
✅ Reduced Risk Profile
Assets in CVs are typically mature and operational, lowering execution risk.
The Role of Retail Capital
One key insight from the report is the rise of retail investor flows into private markets.
These flows are:
- Creating new liquidity channels
- Supporting demand for infrastructure assets
- Offering alternative exit routes for GPs
However, they also introduce complexity, including:
- Pricing pressures
- Structural challenges
- Increased competition for assets
Infrastructure as a Preferred Asset Class
Manulife’s focus on infrastructure is no coincidence.
Why Infrastructure?
Infrastructure assets—such as:
- Renewable energy projects
- Digital infrastructure (fiber, data centers)
- Transportation networks
offer:
- Long-term cash flows
- Inflation protection
- Lower volatility compared to traditional private equity
The global demand for infrastructure investment is massive, with estimates suggesting trillions of dollars required through 2040.
The Bigger Picture: Evolution of the Secondaries Market
Record Growth
The secondaries market has evolved from a niche segment into a mainstream asset class:
- 2024 saw record transaction volumes
- Estimates suggest continued expansion through 2025 and beyond
Increasing Role of GP-Led Deals
GP-led secondaries—including continuation vehicles—are becoming dominant because they:
- Provide liquidity without selling assets externally
- Allow GPs to retain high-quality investments
- Offer structured solutions for LP exits
Challenges and Risks in CV and Secondary Investments
While attractive, these strategies are not without risks.
1. Pricing Transparency
Some investors question whether CV transactions achieve true market value.
Industry discussions highlight concerns that prices may not always reflect the best achievable outcomes.
2. Conflicts of Interest
GP-led deals can create conflicts between:
- Selling LPs
- Rolling LPs
- General partners
Proper governance and third-party fairness opinions are critical.
3. Liquidity Illusion
While secondaries provide liquidity, they are still part of private markets and can:
- Be cyclical
- Depend on market conditions
- Face valuation swings
How This Strategy Impacts Investors
For Institutional Investors
Manulife’s strategy offers:
- Access to high-quality infrastructure assets
- Potential for steady income
- Improved portfolio liquidity
For Private Wealth Investors
The rise of semi-liquid vehicles means:
- Greater access to private markets
- More diversification opportunities
- Exposure to infrastructure income streams
For Fund Managers (GPs)
This trend provides:
- Alternative exit routes
- Extended asset ownership
- Flexibility in portfolio management
SEO Insight: Why “Manulife Buying Infra CVs Secondaries Low DPI” Matters
This topic is gaining traction because it intersects several high-interest search themes:
- Private equity liquidity crisis
- Infrastructure investment trends
- Secondary market growth
- Institutional portfolio strategies
By addressing these themes, this article aligns with both Google Search and Google Discover content preferences:
- Timely financial news
- In-depth analysis
- Clear explanations of complex concepts
Future Outlook: What Comes Next?
استمرار Growth of Secondaries
The secondaries market is expected to:
- Expand in size and sophistication
- Attract more institutional and retail capital
- Become a core portfolio allocation
Infrastructure Demand Will Surge
Driven by:
- Energy transition
- Digitalization
- Urbanization
Infrastructure will remain a key focus for investors.
DPI Recovery Will Take Time
While strategies like CVs and secondaries help, full DPI recovery depends on:
- Improved exit markets
- Stabilized valuations
- Increased deal activity
Key Takeaways
- Manulife Investment Management is actively buying infrastructure continuation vehicles and secondary assets to address low DPI.
- This strategy provides liquidity in a market where traditional exits are limited.
- The secondaries market is experiencing rapid growth and becoming essential to private markets.
- Infrastructure remains a highly attractive asset class due to its stability and long-term demand.
- While promising, CVs and secondaries come with challenges such as pricing transparency and governance concerns.
Final Thoughts
Manulife’s move into infrastructure CVs and secondaries is not just a tactical shift—it’s a reflection of a broader transformation in private markets.
As liquidity pressures persist and investor expectations evolve, strategies like these will play an increasingly central role in shaping the future of investing.
For investors, fund managers, and industry observers alike, one thing is clear:
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