Fundraising - APRIL 20, 2015

I Squared Capital closes $3b global infrastructure fund

by Andrea Waitrovich

I Squared Capital has announced a final close for its ISQ Global Infrastructure Fund with $3 billion in equity commitments.

Investors include a diverse group of pension funds, sovereign wealth funds, insurance companies, asset managers and family offices from the United States, Canada, Europe, the Middle East, Asia and Australia.

To date, the fund has made eight investments in 21 individual assets. In the United States, the fund has invested in hydropower, gas-fired power generation under construction and district energy systems. In addition, the fund is one of the few that invests in high-growth economies, with current investments in wastewater treatment plants in China and a joint venture with the International Finance Corp., a member of the World Bank, to invest in toll roads and logistics in India.

The infrastructure fund close follows British private equity firm Pantheon’s final close for its Pantheon Global Infrastructure Fund II, raising more than $1 billion, exceeding its equity fundraising target at more than double the size of its inaugural program from 2009. And the I Squared mega-fund follows EnCap Investments’ $6.5 billion final close for EnCap Energy Capital Fund X.

In the past three years, 65 global infrastructure funds have closed with more than $100 billion in committed equity, according to IREI’s FundTracker database. The largest fund to close was Riverstone Global Energy & Power Fund V, managed by Riverstone Holdings, which held a $7.7 billion close in June 2013, exceeding its $7.5 billion equity fundraising target.


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