QIC has reached a first close of USD 430m for its second infrastructure debt fund, according to a source familiar with the situation.

Pension funds, insurance companies, and fund-of-funds from North America, Asia and Australia have committed capital to the vehicle that launched in late 2023.

Targeting assets with typical infrastructure characteristics, executives will aim to execute 15-20 deals from the fund, structuring those transactions with high-yield bilateral loans that have tenors of five to seven years, which will be junior to senior debt.

QIC Global Infrastructure Debt Fund II (QIDF II) is a 10-year vehicle targeting a net internal rate of return of 8.5%.

In January, the QIC infrastructure debt team closed on a holdco facility with FBO provider APP Jet Center through QIDF II.

Executives also structured and arranged last year a CAD 225m (USD 165m) holdco facility supporting Porter Airlines’ 50% stake in an in-construction commercial terminal at Montreal Metropolitan Airport, marking the first deal for the fund.

Infrastructure private junior debt spreads have widened over the past 18 months across both US and European markets, positively impacting relative value​, the source added.

QIC’s maiden infrastructure debt fund reached close in January 2023, obtaining about USD 400m in commitments. It was 100% deployed as of October 2024, according to the source.

QIC declined to comment.

[Editor’s note: The second-to-last paragraph has been updated post-publication to note that QIC’s maiden infrastructure debt fund was 100% deployed as of October 2024.]