I Squared Capital has raised $15bn (€13bn) for ISQ Global Infrastructure Fund III, the manager’s latest global infrastructure fund to date.
Including commitments from I Squared Capital and a dedicated co-investment vehicle, Fund III has $15.5bn in investable capital, the manager said.
The predecessor fund raised $7bn in September 2018.
I Squared Capital said the amount raised for the fund exceeded an initial $12bn target as it received capital commitments from over 200 institutional investors, including public and private pensions, sovereign funds, insurance companies, asset managers and family offices in 27 countries.
As previously reported, the Pennsylvania Public School Employees’ Retirement System approved a $400m commitment to the fund and Connecticut Retirement Plans and Trust Funds was planning to invest $150m.
The Teachers’ Retirement System of Louisiana, the Arkansas Teacher Retirement System and Orange County Employees Retirement System also approved commitments to the fund.
UK public pension pool Border to Coast Pensions Partnership disclosed in February last year that it had backed the fund with a $150m commitment.
I Squared Capital said it has targeted the deployment of approximately 36% of the fund in ten investments across its targeted sectors.
Fund III’s investments include the acquisition of a majority stake in Australian organics recycling company Soilco and investments in AG&P City Gas and Mexico’s largest data-centre operator KIO Networks.
Last month, I Squared Capital announced that the fund had created Cube Cold Europe, a $350m cold storage infrastructure investment platform.
Sadek Wahba, chairman and managing partner of I Squared Capital, said: “The closing of the fund comes at a critical time as the public and private sectors work to expand equitable access to sustainable and resilient infrastructure while boosting economic growth and creating jobs.”
Gautam Bhandari, managing partner of I Squared Capital, said: “We are pleased to close our fund above its initial target and more than twice the size of its predecessor fund.
“ISQ Global Infrastructure Fund III’s objective of investing private capital to build infrastructure assets that address the critical challenges of a post-Covid world, including climate change, supply chains, the digital transformation and the energy transition, received strong support from investors.”
Adil Rahmathulla, managing partner of I Squared Capital, said: “ISQ Global Infrastructure Fund III is already off to a great start with a broad portfolio of investments across renewables and the energy transition, supply chains and logistics, digital infrastructure and transportation assets around the world.
”We will continue to do what we do best, which is focus on the secular themes that are shaping societies and economies and migrate capital to the best risk-adjusted opportunities.”
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