I Squared raises $7b for global infrastructure fund

The fund, ISQ Global Infrastructure Fund II, is already 24% invested in assets across North America, Europe, Latin America, and Asia, according to a release. More than 100 institutional investors have committed to the vehicle, including over 80% of the investors from the debut fund, which closed at $3 billion in 2015. Several US state and municipal pension funds are said to be among the LPs.

The fund’s Asia commitments include Hutchison Global Communications, the fixed-line telecom business of Hong Kong’s Hutchison Telecommunications, acquired last year for approximately HK$14.5 billion ($1.85 billion). I Squared has also made a number of investments from the previous vehicle in Indian transportation assets and renewable energy, and in a Chinese waste water treatment plant.

In addition to its global funds, I Squared is also raising ISQ Asia Fund, aimed at investments in South and Southeast Asia. The vehicle received a commitment for $200 million from the US government-backed Overseas Private Investment Corporation (OPIC) in 2016.

I Squared sees Asia’s emerging markets as presenting attractive high-growth investment opportunities, as do a number of global and regional infrastructure investors. Australia’s Macquarie Infrastructure and Real Assets (MIRA) closed its second Asia-focused infrastructure fund at $3.3 billion earlier this year, and Global Infrastructure Partners (GIP) has made several investments in Asia, including the acquisition of IDFC Alternatives’ infrastructure portfolio in India earlier this year.

India’s government is seeking to mobilize private investment in the country’s infrastructure sector through the National Investment and Infrastructure Fund (NIIF), which was set up in 2015 with a view to raising about INR400 billion ($6.2 billion), including a INR200 billion commitment from the government. Investors in the fund include the Abu Dhabi Investment Authority (ADIA), which committed $1 billion last year, and the Asian Infrastructure Investment Bank (AIIB), which committed $100 million.

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• Topics
• Infrastructure
• Fundraising
• GPs
• South Asia
• Greater China
• I Squared Capital
• India
• China