I Squared Capital hits $3bn for infra credit strategy
I Squared Capital has raised $3bn (£2.2bn) for its infrastructure credit strategy following the final close of its second fund, which is four times the size of its predecessor.
ISQ Global Infrastructure Credit Fund II closed with more than $2.4bn of commitments, with a further $600m committed or expected to be committed to co-investment vehicles.
That takes total commitments to the strategy to $3bn, double the infrastructure investor’s original target of $1.5bn.
The fund has already committed around 37 per cent of its capital across seven investments, the firm said.
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“Raising four times the capital of our first credit fund reflects investor support for a lender that thinks like an owner,” said David Rosenblum, fund partner at I Squared Capital. “As capital markets reprice risk, owners of essential infrastructure need partners who can provide flexible capital through the cycle.”
The fund lends to mid-market businesses that own and operate essential infrastructure, including power generation and grids, fibre networks and data centres, as well as ports, terminals and logistics, I Squared said.
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Its loans are secured against physical assets and backed by contracted or regulated cash flows, with the fund providing predominantly senior financing across North America and Europe.
“Infrastructure credit has become a standalone asset class,” said Gautam Bhandari, co-founder, managing partner and global chief investment officer of I Squared Capital.
Latham & Watkins acted as legal counsel to I Squared and the fund.
Miami-headquartered I Squared is a mid-market infrastructure investor with more than $60bn of assets under management.
