Key Takeaways
- • I Squared Capital reached the final close of ISQ Global Infrastructure Credit Fund II at more than $2.4 billion, and $3 billion in total commitments including more than $600 million in co-investment vehicle commitments and expected commitments, double the original $1.5 billion target.
- • The new fund is more than four times the size of its predecessor, signaling strong institutional demand for infrastructure-backed private credit.
- • The strategy provides senior financing secured by physical infrastructure assets with long-term contracted or regulated cash flows, targeting middle-market businesses in North America and Europe.
- • The fund has already committed roughly 37% of its capital across seven investments.
- • I Squared, a Miami-headquartered firm managing more than $60 billion in assets, draws on its infrastructure equity platform, active since 2012, to underwrite its credit investments.
Summary
I Squared Capital, a global infrastructure investment firm managing more than $60 billion in assets, has announced the final close of its ISQ Global Infrastructure Credit Fund II at more than $2.4 billion. Including more than $600 million in commitments and expected commitments to related co-investment vehicles, the strategy has reached $3 billion in total commitments, doubling its original $1.5 billion fundraising target. According to the firm's announcement, the new fund is more than four times the size of its predecessor, reflecting growing institutional investor demand for private credit strategies backed by essential infrastructure assets.
The fund will provide financing to middle-market infrastructure businesses across North America and Europe. Target sectors include power generation, electrical grids, fiber networks, data centers, ports, terminals, and logistics infrastructure. I Squared primarily provides senior financing secured by physical infrastructure assets and supported by long-term contracted or regulated cash flows, an approach designed to give investors exposure to businesses generating recurring revenues from essential services. The fund has already committed approximately 37% of its capital across seven investments.
The strategy draws on I Squared's broader infrastructure investment platform, which has invested in infrastructure equity since 2012. The firm says combining its credit capabilities with its equity team's sector expertise, sourcing relationships, and operational experience allows it to identify financing opportunities across complex infrastructure markets. Founded in 2012 and headquartered in Miami, I Squared manages a diversified platform spanning power and utilities, transportation and logistics, digital, environmental, and social infrastructure, with more than 100 portfolio companies operating in over 70 countries.
Gautam Bhandari, Co-Founder, Managing Partner and Global Chief Investment Officer of I Squared Capital, said: "Infrastructure credit has become a standalone asset class. We lend against power grids, fiber networks and ports – businesses that modern economies cannot run without." David Rosenblum, Fund Partner at I Squared Capital, said raising four times the capital of the first credit fund "reflects investor support for a lender that thinks like an owner," adding that "as capital markets reprice risk, owners of essential infrastructure need partners who can provide flexible capital through the cycle."
Latham & Watkins served as legal counsel to I Squared Capital and the fund.
The fund will provide financing to middle-market infrastructure businesses across North America and Europe. Target sectors include power generation, electrical grids, fiber networks, data centers, ports, terminals, and logistics infrastructure. I Squared primarily provides senior financing secured by physical infrastructure assets and supported by long-term contracted or regulated cash flows, an approach designed to give investors exposure to businesses generating recurring revenues from essential services. The fund has already committed approximately 37% of its capital across seven investments.
The strategy draws on I Squared's broader infrastructure investment platform, which has invested in infrastructure equity since 2012. The firm says combining its credit capabilities with its equity team's sector expertise, sourcing relationships, and operational experience allows it to identify financing opportunities across complex infrastructure markets. Founded in 2012 and headquartered in Miami, I Squared manages a diversified platform spanning power and utilities, transportation and logistics, digital, environmental, and social infrastructure, with more than 100 portfolio companies operating in over 70 countries.
Gautam Bhandari, Co-Founder, Managing Partner and Global Chief Investment Officer of I Squared Capital, said: "Infrastructure credit has become a standalone asset class. We lend against power grids, fiber networks and ports – businesses that modern economies cannot run without." David Rosenblum, Fund Partner at I Squared Capital, said raising four times the capital of the first credit fund "reflects investor support for a lender that thinks like an owner," adding that "as capital markets reprice risk, owners of essential infrastructure need partners who can provide flexible capital through the cycle."
Latham & Watkins served as legal counsel to I Squared Capital and the fund.
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