I Squared’s Murray Exits to Launch Infrastructure-Credit Effort

(Bloomberg) -- Tom Murray left I Squared Capital to form a new high-yield infrastructure credit investment effort within Power Corp. of Canada's asset-management platform Power Sustainable, according to a person with knowledge of the matter.

Affiliates of Power Corp. have agreed to commit $1 billion to the direct-lending strategy, said the person, requesting anonymity because the information is private. The firm will seek to extend credit to infrastructure companies with a positive environmental, social and governance impact, such as clean-energy producers, the person said. Murray, who was head of credit at I Squared Capital, has a 12-month non-compete agreement with the firm.

Murray declined to comment. Montreal-based Power Corp., which has a market capitalization of about $21 billion, didn't respond to a request for comment.

The effort will target a gross internal rate of return of 6% to 10%, and seek to raise third-party capital over time, the person said. The incentive structure includes potential ownership in the new venture.

Murray, who's based in Miami, joined I Squared Capital in 2019, and previously worked at Apollo Global Management Inc. and WestLB AG.

“Tom Murray and I Squared Capital have agreed to part ways,” an I Squared spokesperson said in a statement. “Tom's departure does not trigger a key-person event for the ISQ Global Infrastructure Credit Fund, and has not impacted the fund's operations, strategy or investment execution.”

The I Squared credit vehicle has so far raised about $627 million, according to data compiled by Bloomberg.

Power Sustainable already has an infrastructure-equity effort, which has made investments in companies including Lion Electric Co. The electric-vehicle maker made a public-market debut in May 2021 after merging with a special purpose acquisition company.

Infrastructure debt has become increasingly in favor with alternative-asset managers. Ares Management Corp. this month completed its purchase of AMP Capital's infrastructure-debt platform.

Infrastructure Investor reported on Murray's departure from I Squared Capital earlier this month without details of his new endeavor.