Australian superannuation fund Rest has committed $300m (£232.5m) to infrastructure investment manager I Squared Capital.

Rest is one of Australia’s largest profit-to-member superannuation funds, with around AUD$93bn (£45bn) in assets under management. Rest said that the new commitment aligns with its goal to deliver attractive risk-adjusted returns for the fund’s two million members while supporting essential infrastructure development.

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“We are delighted to welcome Rest as a cornerstone investor in our credit strategy,” said David Rosenblum, fund partner at I Squared Capital.

“Their investment is a testament to the strength of our platform and our ability to source and structure compelling investment opportunities in infrastructure credit.

“The investment highlights the growing appetite for infrastructure debt opportunities among large and sophisticated LPs. We look forward to a long-term partnership that delivers strong, risk-adjusted returns for Rest’s members.”

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“We are seeing increasing demand for infrastructure financing as businesses invest in essential projects to support economic growth and the energy transition,” said Simon Esposito, Rest’s interim co-chief investment officer.

“Coupled with the strong fundamentals of infrastructure credit markets, we believe this presents a compelling investment opportunity for our members.

“The majority of our members are decades from retirement, so we think deeply about the world they will retire into, as well as the megatrends likely to influence global society and the economy over the long term.”

The I Squared credit strategy provides tailored financing solutions for infrastructure assets, leveraging the firm’s deep sector expertise and global network. The strategy targets investments in essential infrastructure with resilient cash flows and strong downside protection.

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