I Squared Capital has closed a new infrastructure fund at $7 billion, as the New York-based investment firm that counts renewable energy and highway developers in its India portfolio seeks to step up its bets on both emerging and developed economies.
The ISQ Global Infrastructure Fund II exceeded its initial target of $5 billion and is even bigger than the $6.5 billion corpus it was aiming for last year. The second fund is also more than twice the firm's first fund, which raised $3 billion in 2015.
I Squared joins a bunch of private equity firms in raising a new infrastructure fund this year. US-based Global Infrastructure Partners closed a mammoth $15.8 billion fund for infrastructure investments in January while Macquarie Infrastructure and Real Assets finished fundraising for its $3.3 billion Asian infrastructure fund in April.
Indian PE firms that are raising infrastructure funds include Edelweiss Alternative Asset Advisors Pvt. Ltd and IL&FS PE. Morgan Stanley is targeting $750 million for its maiden India-focussed infrastructure fund.
I Squared said in a statement that the second fund received commitments from more than 100 institutional investors.
Sadek Wahba, managing partner at I Squared, said the fund is already 24% invested with portfolio companies in the US, Europe, Canada, Hong Kong and Latin America.
“We currently see opportunities globally with attractive risk-adjusted returns across different sectors including energy, telecom, transport, and utilities in the US and Europe as well as in high-growth economies including India, China and Latin America,” he said.
I Squared Capital has more than $13 billion in assets under management from institutional investors including pension funds, insurance companies, sovereign funds, asset managers and family offices. It also manages funds on behalf of the U.S. government’s Overseas Private Investment Corporation. The firm has a team of more than 100 professionals based in Hong Kong, Houston, London, Miami, New Delhi, New York and Singapore.
In India, it has made significant investments in highways and toll assets via Cube Highways, its joint venture platform with International Finance Corporation, the World Bank’s private-sector investment arm. The PE firm has also invested in Amplus Energy Solutions but is looking to exit the solar energy company, VCCircle reported late last year.