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‘Differing views’ led to I Squared infra credit MD departure

The departure of Tom Murray, who had joined from Apollo, will not trigger a key man clause, as fundraising for the firm's debut debt fund continues.

Tom Murray has left his role as managing director within I Squared Capital’s infrastructure credit division.

“Tom Murray and I Squared Capital have agreed to part ways,” an I Squared spokesperson told Infrastructure Investor. “We value Tom’s contributions over the past two-and-a-half years to help grow our infrastructure credit business. This time allowed us to assess the necessary improvements to ensure the long-term success of our infrastructure credit strategy for both I Squared Capital and our limited partners.

“We had differing views on how to achieve this success on several matters, including I Squared Capital’s compensation structure, which is designed to ensure the long-term alignment of interest between our investment professionals and our limited partners.”

The spokesperson added: “Tom’s departure does not trigger a ‘key person event’ for the ISQ Global Infrastructure Credit Fund, and we believe that it will not impact the fund’s operations, strategy or investment execution going forward. We wish Tom the best of luck in his future endeavours.”

Murray, who joined the Miami-based firm after working at Apollo in 2019, is not believed to have a new role lined up at this stage.

Murray did not respond to a request for comment in time for publication.

I Squared launched the ISQ Global Infrastructure Credit Fund in late 2020, shortly after collecting $800 million for its credit strategy in separate accounts in October 2020. ISQ GICF had raised $626.9 million for the fund by mid-November 2021, according to an SEC filing, with a target of $1 billion.

The mezzanine strategy is designed “to take advantage of distressed opportunities in the current to near term market environment”, according to documents from the Connecticut Retirement Plans and Trust Funds in November 2020. It targets transactions in investment and non-investment grade debt, averaging BB/B credit quality, the documents added. Investors are offered a choice to earn target levered returns of 12 percent to 15 percent and a cash yield of 6 percent to 8 percent or unlevered target returns of 8-10 percent and 5-6 percent cash yield.

Murray’s exit is one of three, alongside the departures of Mark Clark and Daniel Fein. Clark was a principal at the GP, having joined from Citi in 2014, who sat on the boards of portfolio companies Lincoln Clean Energy, Cube District Energy and Cube Hydro Partners. Fein was a vice-president at the group, having joined in 2018 from Goldman Sachs’ natural resources division.

I Squared is currently also raising its third global equity infrastructure fund, set to close on its revised $15 billion hard-cap.