Rest announces $300 million investment in I Squared Capital’s credit strategy

Rest, one of Australia’s largest profit-to-member superannuation funds, has announced a USD $300 million commitment to I Squared Capital, a leading global infrastructure investment manager.

The commitment underscores Rest’s confidence in I Squared Capital’s infrastructure credit strategy, which focuses on providing flexible and structured capital solutions to essential infrastructure assets worldwide.

Rest’s interim Co-Chief Investment Officer, Simon Esposito says the commitment aligns with Rest’s goal to deliver attractive risk-adjusted returns for the fund’s 2 million members while supporting essential infrastructure development.

“We are seeing increasing demand for infrastructure financing as businesses invest in essential projects to support economic growth and the energy transition. Coupled with the strong fundamentals of infrastructure credit markets, we believe this presents a compelling investment opportunity for our members,” says Mr Esposito.

“The majority of our members are decades from retirement, so we think deeply about the world they will retire into, as well as the megatrends likely to influence global society and the economy over the long term.

“With a focus across sectors including renewable energy, digital infrastructure, and transportation and logistics, we believe our investment with I Squared Capital is well- positioned to benefit from these decarbonisation, digitalisation, and deglobalisation megatrends, while also enhancing the diversification of our infrastructure portfolio across different sectors and geographies.”

The I Squared credit strategy provides tailored financing solutions for infrastructure assets, leveraging the firm’s deep sector expertise and global network. The credit strategy targets investments in essential infrastructure with resilient cash flows and strong downside protection, offering investors an attractive risk-return profile.

I Squared Capital’s Fund Partner, David Rosenblum, says: “We are delighted to welcome Rest as a cornerstone investor in our credit strategy. Their investment is a testament to the strength of our platform and our ability to source and structure compelling investment opportunities in infrastructure credit. The investment highlights the growing appetite for infrastructure debt opportunities among large and sophisticated LPs. We look forward to a long-term partnership that delivers strong, risk-adjusted returns for Rest’s members.”