Ex-Morgan Stanley Executives Said to Plan $2 Billion Fund

I Squared Capital LLC, the private-equity firm led by former executives of Morgan Stanley (MS)’s infrastructure arm, is seeking $2 billion for its debut global fund, a person with knowledge of the matter said.

ISQ Global Infrastructure Fund LP will invest in energy, utilities and transportation, according to two people familiar with the matter, who asked not to be identified because the information isn’t public.

Sadek Wahba, a partner at the firm, didn’t immediately respond to a call seeking comment. Campbell Lutyens & Co. is helping the firm raise the money, the people said.

I Squared Capital, based in New York, is among a number of firms amassing multibillion-dollar funds to make investments related to public works. Morgan Stanley’s infrastructure investment unit plans to seek $4 billion for a second global fund, two people with knowledge of the matter said in May. Toronto-based Brookfield Asset Management Inc. (BAM) has raised $6.2 billion for a private infrastructure fund, exceeding the $5 billion target, according to a July 9 SEC filing.

About two thirds of the I Squared fund will be allocated to North America and Europe, with the rest slated for fast-growing economies such as China and India, according to the people.

Wahba and partners Gautam Bhandari and Adil Rahmathulla previously worked together at Morgan Stanley. Wahba, who was chief investment officer and global head of Morgan Stanley’s infrastructure team, left the bank in late 2011. Bhandari had been a managing director and head of the infrastructure team in Asia, and Rahmathulla was head of investment execution in the Americas for the group.

The I Squared team totals 27 professionals, nine of whom came from Morgan Stanley’s infrastructure arm, including the investment and fundraising group from New York, London and Asia.

To contact the reporter on this story: Sabrina Willmer in New York at swillmer2@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net

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