North America: I Squared reports capital raise milestone

10 July 2018 - 12:00 am UTC

I Squared Capital has raised USD 6.201bn in its current fundraise for the ISQ Global Infrastructure Fund II, according to an SEC filing dated 9 July 2018.

The fund comfortably surpassed its USD 5bn target and has a USD 6.5bn hard cap, and is expected to follow a capital deployment scheme similar to its USD 3bn inaugural fund, which has seen investments in Europe (20%), US (50%), and high-growth economies (30%). It targets investments in the midstream (20%), energy (30%), utilities/telecom (30%), and transportation (20%).

Fund II so far has investments in three companies, including HGC Global Communications, Pinnacle Midstream, and Inkia Energy. The GP intends to follow these investments with middle market assets holding a core risk profile, including some complexity with opportunistic return.

In addition to these investments, ISQ II has also earmarked capital for the Cube Hydro and Cube Highways platforms.

Advising I Squared on the fundraise is Evercore Partners (placement agent) and Gibson, Dunn & Crutcher (legal).

By December 2017, Fund I generated a 26.5% gross IRR and 18.2% net IRR, and a 1.5x gross MOIC and 1.3x net MOIC, according to Inframation Deals. Fund I annualized yield from operations accumulated to 9.2%. The fund reached its hard cap in April 2015.