North America: I Squared hits hard cap on second infrastructure fund

05 June 2018 - 12:00 am UTC

I Squared Capital has reached the USD 6.5bn hard cap on its second infrastructure fund, ISQ Global Infrastructure Fund II (ISQ II), Inframation has confirmed.

The asset manager initially launched the fundraising process for the effort in 2017 with a USD 5bn target, as reported.
The fund’s strategy is to invest approximately two-thirds of its capital in the United States (50%), Europe (20%), and select high-growth economies in Asia and Latin America (30%). The fund intends to host investments across middle market assets with a core risk profile across the energy (30%), utilities/telecom (30%), transportation (20%) and midstream (20%) sectors, as previously reported.
The milestone marks the second core infrastructure fundraise led by a US-based manager to hit its hard cap in 2018, since Stonepeak recently surpassed its USD 7bn hard cap on 2 May of this year.
A source told Inframation that the fund has already made at least three investments so far, including HGC Global Communications, which owns a network of more than 1.4 million kilometers of fiber-optic cable in Hong Kong; Pinnacle Midstream, a provider of crude and natural gas gathering in West Texas; and Inkia Energy, an owner and developer of generation, transmission and distribution assets across Latin America.​​​​​​
In addition to these investments, ISQ II has also earmarked capital for the Cube Hydro and Cube Highways platforms.
Evercore (placement agent) and Gibson, Dunn & Crutcher (legal advisor) assisted on the fundraise.
I Squared Capital did not return calls seeking comment.
Lincoln Clean Energy hire
Lincoln Clean Energy, a portfolio company of I Squared Capital, appointed Vishal Kapadia as its Senior Vice President of Finance and Corporate Development, according to a 5 June press release.
Kapadia will be responsible for spearheading all finance functions for the company’s renewable portfolio. He previously worked for Morgan Stanley, where he led the firm’s principal finance activities in the renewable energy space.
Kapadia’s remit was based on providing debt and tax equity financing for wind and solar projects, as well as active board-level management of the firm’s renewable energy operating platforms.