Infra PE: I Squared Capital Reputation/Thoughts?

Any thoughts/comments on I Squared Capital? I know they're top ~10 ish infra PE fund that's currently raising a 3rd fund. How would they compete against independent infra funds such as GIP/Stonepeak or infra arms of megafunds?

As someone with traditional pe background and interested in switching into infra, i'm curious about the fund's reputation among the insiders.

Thanks!

8 Comments
 

I can't comment on culture or anything about the associate experience there, but I work at a fund with a similar mandate and we run into each other on processes often. I'd guess their sweet spot equity check is $250mm to $750mm. Think they will bid across all the core infra sectors. Would be curious if others have better insight too?

 

How were your hours usually and the scope of work on day-to-day basis?

Have you ever worked in PE-backed platforms that they raise and scale up?

 
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ISQ is a great place to be if you're interested in infra PE. They're rapidly growing, founded in 2011 by senior folks from Morgan Stanley Infrastructure, have less than 200 professionals and now have over $24bn in AUM. Their main competitors are GIP/Stonepeak/Antin/Macquarie/Brookfield/EQT/KKR/etc and they have a great reputation as a rising firm within the infra space. As you mentioned, most notably they are raising their third global infra fund aiming for a $12bn close, as well as launching a new Infra Tech fund that is looking to be one of the first to target infrastructure technology specifically, separate from their flagship general funds. In regards to past performance, their first global infra fund ($3bn close) was able to hit 22% gross IRR and their second fund ($7bn close) fluctuated around 17/18% gross IRR, with roughly 30 portfolio companies held in both established and emerging markets. Recently, they acquired Atlantic Power for $961 million and also looking to buy Aggreko, a British provider of portable power generators for roughly £2.25 billion. 

I guess one downside is that since they are HQ'd in Miami, you might have to move as most of their investment team is there. 

 

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