I Squared Capital has announced the final close of ISQ Global Infrastructure Credit Fund II at more than 2.4 billion dollars, more than four times the size of its predecessor fund. Together with more than 600 million dollars in commitments and expected commitments to co investment vehicles, total commitments to the strategy reach 3 billion dollars, double the original 1.5 billion dollar target.
The distinction matters. The 3 billion dollar headline is a strategy total including co investment, not the blind pool fund alone, and part of the co investment amount is described by the firm as expected commitments. The fund provides primarily senior secured financing to middle market businesses that own and operate essential infrastructure in North America and Europe, including power generation and electricity grids, fibre optic networks, data centres, and ports, terminals and logistics.
The fund has already committed about 37 percent of its capital across seven investments. I Squared manages more than 60 billion dollars in assets, and Latham and Watkins acted as legal counsel to the fund.
The close follows a similar pattern across infrastructure credit this autumn, with rival managers also closing second vintage credit funds well above target and well above their predecessors. The pattern is structural: pension and insurance capital that once bought infrastructure equity is now also supplying its debt, at mid market scale, in direct competition with bank project finance.