I Squared Capital raises $3 billion for infrastructure credit fund amid demand boom
Investor appetite for infrastructure financing remains strong as power, data center and other large-scale projects expand globally. I Squared Capital says its second infrastructure credit fund closes at $3 billion, exceeding its original target and growing well beyond its predecessor.
Highlights
- I Squared Capital closed its ISQ Global Infrastructure Credit Fund II at $3 billion, doubling its fundraising target and quadrupling its predecessor’s size.
- Commitments for the fund came from insurance companies, sovereign wealth funds, and pension funds based in both the U.S. and overseas.
- Institutional investor demand for infrastructure credit remains strong as global spending grows on power networks, data centers, and essential assets.
Fundraising outcome and investor base
As reported by Bloomberg, I Squared Capital says it has closed its second infrastructure credit fund after raising $3 billion, in a sign of continued demand for private capital backing major global projects.The firm's ISQ Global Infrastructure Credit Fund II doubles its initial fundraising goal and ends up at four times the size of its predecessor fund, according to a statement issued Tuesday. David Rosenblum, a fund manager at I Squared, says commitments come from insurance companies, sovereign wealth funds and pension funds in the U.S. and overseas.
Infrastructure financing demand gains momentum
The fundraising underscores how investors continue to seek exposure to infrastructure credit as countries and companies expand spending on power networks, data centers and other essential assets.That trend points to sustained institutional interest in financing the buildout of large projects, particularly as long-term investors look for assets tied to core economic infrastructure.
In our earlier article on the U.S. AI data-center buildout, we examined how rising financing costs, construction delays and power constraints are making many planned projects less credible. We also noted that weakening investor confidence and cost overruns can force developers to seek additional capital, putting timelines and returns under pressure.