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.
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 strategy focuses on providing 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. This approach is designed to provide investors with exposure to infrastructure businesses that generate recurring revenues from essential services.
The fund has already committed approximately 37% of its capital across seven investments, demonstrating an active deployment strategy alongside its fundraising activities.
ISQ Global Infrastructure Credit Fund II draws on I Squared Capital’s broader infrastructure investment platform, which has been investing in infrastructure equity since 2012. By combining its credit investment capabilities with its equity team’s sector expertise, sourcing relationships, and operational experience, the firm aims to identify financing opportunities across complex infrastructure markets.
The fundraising milestone comes as infrastructure businesses require substantial capital to expand and modernize essential assets, particularly in areas such as power systems, digital connectivity, transportation, and logistics.
I Squared’s approach emphasizes lending against established infrastructure assets while providing financing flexibility to operators navigating changing capital market conditions.
Founded in 2012 and headquartered in Miami, I Squared Capital manages a diversified infrastructure investment platform spanning power and utilities, transportation and logistics, digital infrastructure, environmental infrastructure, and social infrastructure.
The firm’s portfolio includes more than 100 companies operating across over 70 countries, with offices in major financial centers throughout North America, Europe, Asia, the Middle East, and South America.
Support: Latham & Watkins served as legal counsel to I Squared Capital and the fund.
KEY QUOTES:
“Infrastructure credit has become a standalone asset class. 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.”
Gautam Bhandari, Co-Founder, Managing Partner And Global Chief Investment Officer Of I Squared Capital
“Raising four times the capital of our first credit fund reflects investor support for a lender that thinks like an owner. 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.”
David Rosenblum, Fund Partner At I Squared Capital
