I SQUARED’S CUBE EYEING INVIT FOR ROADS PORTFOLIO

Global infrastructure fund I Squared Capital’s Indiabased roads and highways platform, Cube Highways, is exploring an infrastructure investment trust (InvIT) for its portfolio of operating roads, two people aware of the development said.

Founded in 2012 by former Morgan Stanley executives, I Squared Capital is an independent global infrastructure investment manager which is focused on energy, utilities and transport in North America, Europe and some high-growth economies. The firm has offices in New York, Houston, London, New Delhi, Hong Kong and Singapore.

In April 2015, I Squared Capital announced the final close of its first infrastructure fund, ISQ Global Infrastructure Fund, at $3 billion.

“I Squared Capital is exploring the option of setting up an InvIT for a bunch of operational road assets that Cube owns. They have been engaging with advisers to understand the viability of the product for their portfolio of road assets. They are looking at a private InvIT structure,” said one of the people cited above, requesting anonymity, as he is not authorised to speak to reporters.

InvITs are trusts that manage income-generating infrastructure assets, typically offering investors regular yield and a liquid method of investing in infrastructure projects.

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