Sources revealed that I Squared Capital LLC is looking to raise US$2 billion for its global infrastructure fund. I Squared Capital is a private-equity company headed by former executives of Morgan Stanley's infrastructure business. Campbell Lutyens & Co. is said to be assisting the company raise the money.

The fund, named ISQ Global Infrastructure Fund LP, will be allocating the capital in utility, energy, and transportation investments, according to two sources close to the matter.

New York-based I Squared Capital is among a selection of investment firms creating multibillion-dollar funds so that they could make investments connected to public works and infrastructure. The infrastructure investment unit of Morgan Stanley plans raise around US$4 billion for a second global fund. Another investment firm catering to private infrastructure, Canada's Brookfield Asset Management Inc., had already raised US$6.2 billion for its own fund. Brookfield's fund exceeded its own $5 billion target, according to official SEC documents.