I Squared Capital raises $7bn

The New York-based investment firm closes second infrastructure fund $2 billion above target.

I Squared Capital has held a final close of ISQ Global Infrastructure Fund II at $7 billion, after 16 months of fundraising. I Squared beat its initial target of $5 billion, collecting commitments from more than 100 institutional investors in North America, Europe, Asia, Australia and elsewhere.

Among the investors in the second fund are the North Dakota State Investment Board, which approved $140 million to the vehicle; $250 million from the Washington State Investment Board; and $150 million from the Texas Municipal Retirement System.

The firm will keep the same investment strategy it held for Fund I, which is to invest in mid-market operating assets in the energy, transportation, utilities and telecom sectors, mostly in OECD markets. Around a third of the fund can invest in non-OECD countries.

I Squared’s first infrastructure fund closed on $3 billion in April 2015.