I Squared Capital Partners with DFC for $1.2B Climate Fund

I Squared Capital, a Miami-based global infrastructure investor, has closed its first climate-focused fund at $1.2 billion in conjunction with the U.S. International Finance Development Corporation (DFC), which will commit $300 million to the vehicle, with the remainder coming from I Squared funds.

“The opportunity to invest alongside DFC underscores the importance of public private partnerships as vehicles to support sustainable infrastructure in the markets that need it most. It also mitigates regulatory and political risk and enables investments in infrastructure-related sectors at attractive risk adjusted returns in high growth emerging economies,” said Sadek Wahba, Chairman of I Squared Capital.

I Squared Capital funds have committed $7.9 billion to infrastructure investments in emerging markets over the past decade across energy, utilities, transportation, social infrastructure, digital infrastructure and environmental infrastructure.

In 2023, I Squared closed its inaugural infrastructure credit fund at $750 million and was said to be planning a $1.5 billion follow-up fund by October. The firm closed its ISQ Global Infrastructure Fund III at $15 billion in 2022, exceeding its original goal of $12 billion.

The firm manages more than $38 billion in assets focused on North America, Europe, Asia and Latin America.