US pension funds are backing I Squared Capital’s second global infrastructure fund to raise $6.5bn (€5.5bn) as it nears its final close.

A source told IPE Real Assets that ISQ Global Infrastructure Fund II which set out to raise $5bn is expected to reach the hard cap target in the next couple of months.

The previous fund secured $3bn of commitments in 2014.

North Dakota State Investment Board said in a meeting document that it made a $140m commitment to ISQ Fund II as it neared the close.

IPE Real Assets reported last year that the fund attracted commitments from Texas Municipal Retirement System and New Mexico Educational Retirement Board.

This was followed by an investment from State of Connecticut Retirement Plans and Trust Funds as well as a commitment by Alameda County Employees’ Retirement Association.

I Squared Capital will focus on mid-market deals in the energy, utilities and transportation sectors.

Fund II will invest in value-add infrastructure assets predominantly in North America and Europe, with the potential to include some growth markets in Latin America and Asia.