I Squared Capital, a leading independent global infrastructure investor, today announced the final close of ISQ Global Infrastructure Credit Fund II at more than $2.4 billion, over four times the size of its predecessor fund.
Together with more than $600 million in commitments and expected commitments to co-investment vehicles, total commitments to the strategy reach $3 billion, double the original $1.5 billion target and four times the size of the predecessor strategy reflecting strong demand from institutional investors for infrastructure credit.
The fund lends to mid-market businesses that own and operate essential infrastructure, including power generation and grids, fiber networks and data centers, and ports, terminals and logistics. Its loans are secured by physical assets and supported by contracted or regulated cash flows. It provides predominantly senior financing across North America and Europe, drawing on the sourcing networks, sector knowledge and operating experience of I Squared’s equity platform, which has invested in infrastructure since 2012. The fund has already committed approximately 37 percent of its capital across 7 investments.
“Infrastructure credit has become a standalone asset class,” said Gautam Bhandari, Co-Founder, Managing Partner and Global Chief Investment Officer of I Squared Capital. “We lend against power grids, fiber networks and ports – businesses that modern economies cannot run without. These businesses deliver long-term, contracted revenues. We underwrite each loan as owners who know how these assets are built and run, and investors increasingly seek out that distinction in their managers.”
“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, I Squared Capital. “As capital markets reprice risk, owners of essential infrastructure need partners who can provide flexible capital through the cycle. Our credit and equity teams work side by side to do that.”
Latham & Watkins LLP served as legal counsel to I Squared and the Fund.
About I Squared Capital
I Squared Capital is a leading independent global infrastructure investor dedicated to the mid-market, managing over $60 billion in assets. Founded in 2012, I Squared has evolved into one of the most diverse infrastructure investors in the world, with investments across power & utilities; transportation & logistics; digital infrastructure; environmental infrastructure; and social infrastructure, providing essential services to millions of people worldwide. Today, the portfolio includes over 100 companies operating in more than 70 countries. Headquartered in Miami, the firm has offices in Abu Dhabi, London, Munich, New Delhi, São Paulo, Singapore, Sydney, Taipei and Tokyo. Learn more at www.isquaredcapital.com.
Disclaimers
This document does not constitute advice or a recommendation or offer to sell or a solicitation to deal in any security or financial product. It is provided for information purposes only. Investing involves risk; loss of principal is possible. Specific investments described herein do not represent all investment decisions made by ISQ. The reader should not assume that investment decisions identified and discussed were or will be profitable. Specific investment advice references provided herein are for illustrative purposes only and are not necessarily representative of investments that will be made in the future.
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