I Squared Raises $7 Billion for Infrastructure Investments

I Squared Capital, an infrastructure-focused private equity firm founded by former Morgan Stanley executives, has raised $7 billion for its second fund, exceeding its original target as competition for investor capital heats up.

The fund, known as ISQ Global Infrastructure Fund II, will make equity investments that average $300 million for energy, utilities, transport and telecommunications deals around the world, according to Chief Investment Officer Sadek Wahba. There’s one restriction: no more than one-third of the fund can be invested in countries that aren’t in the Organization for Economic Cooperation and Development. Non-OECD countries include India, Guatemala and El Salvador.