Infra investment firm mulling India-focused fund with ₹5,000cr corpus
What's the story
I Squared Capital (ISQ), a global infrastructure investment firm, is considering the establishment of an India-focused vehicle with a corpus of ₹4,000-5,000 crore, as per Mint. The proposed fund will target sectors like transport and logistics, energy transition, digital and environmental infrastructure as well as social infrastructure. The move comes amid growing interest from domestic investors in Indian infrastructure projects through partnerships with global funds such as ISQ.
Unique initiative
Global fund setting India-focused vehicle
If successful, this will be one of the first instances of a global fund setting up an India-focused vehicle in the infrastructure sector. The new fund will give Indian investors an opportunity to invest alongside ISQ's global fund. Founded in 2012, ISQ manages around $60 billion across more than 100 portfolio companies and has offices worldwide including Abu Dhabi, New Delhi, London and Miami.
Proven expertise
ISQ's established track record in India
ISQ has a dedicated team in India and an established track record of sourcing, investing, scaling, and exiting infrastructure assets that provide essential services to millions across the country. The firm's India portfolio includes Cube Highways (one of India's largest highway platforms), THINK Gas (a gas distribution platform), Hexa Climate (a renewables platform supplying round-the-clock power) and Lightstorm (a data-center fiber platform connecting major cities).
New ventures
Recent investments in Indian infrastructure
ISQ recently launched Cube Grid, a billion-dollar power transmission platform targeting India's rapidly expanding electricity grid. The firm has also invested in Polaris (a smart-metering platform), Cube Grid (a power-transmission platform) and Amplus (a distributed solar developer). These investments are part of ISQ's broader expansion strategy targeting global electric grids, transport networks, and data centers.
Foreign investment
Foreign funds' investments in Indian infrastructure
Large foreign funds have been investing in India for a long time, mostly in operating assets. The Ontario Teachers' Pension Plan has invested over $4 billion across India's infrastructure, private equity and tech sectors. Meanwhile, the Canada Pension Plan Investment Board Investments has over $22 billion in infrastructure, digital assets among others. ISQ has also committed more than $4 billion to Indian infrastructure projects across transport, power transmission and digital infrastructure sectors.