Isio launches platform to enable pension schemes to sell illiquid assets

30 May 2024: Isio, one of the fastest growing pensions consultancies in the UK, has launched Isio Fund Liquidity Options (‘i-FLO’), a unique platform that enables investors such as pension schemes to sell illiquid assets more efficiently.

The launch of i-FLO has been driven by the significant demand Isio has seen from pension schemes to sell illiquid assets, combined with the difficulties sellers face doing so in a timely manner and at a good price.

Desire to sell illiquid assets has increased following the market volatility caused by the Budget in September 2022, with pension schemes seeking greater liquidity, to rebalance strategic asset allocation, or to prepare for an insurance transaction. Typically, clients have used brokers to sell illiquid assets, but that process is inefficient in nascent markets such as private debt and infrastructure equity secondaries.

Isio’s i-FLO platform provides a better alternative in these markets by leveraging Isio’s direct relationships with leading private debt and infrastructure equity secondaries buyers. This enables schemes to find buyers and execute sales in a more efficient manner, with lower fees compared to other options in the market.

The Isio team is currently advising a number of illiquid assets sales, across private debt and infrastructure equity. In addition, Isio supports transactions for other private markets asset classes, such as private equity and real estate, by working with a panel of brokers and acting as a one-stop solution for all types of private assets. Isio is also exploring other innovative ways of obtaining liquidity for schemes outside of outright sales.

Ajith Balan Nair, Head of Asset Class and Manager Research at Isio, said: “Private markets asset classes have provided excellent sources of alternative income and growth for pension scheme investors in recent years, but the fallout of the LDI crisis and being closer to the endgame is prompting many of them to sell. Unfortunately, this is often easier said than done, and the process for exiting illiquid assets can be slow and expensive.

“We have launched i-FLO to provide a more efficient way to complete transactions. Our platform takes advantage of the strength and depth of our relationships with private market secondaries investors in private debt and infrastructure equity to deliver a faster result at a competitive price and with lower fees compared to what we have seen historically through the traditional routes in the market. We hope to grow the platform over time to provide effective solutions for the buyers and sellers of illiquid assets across the institutional marketplace.”