v3.26.1
Derivative Instruments
 6 Months Ended
Jun. 30, 2026
ISQ Open Infrastructure Company LLC - Series II [Member]  
Derivative Instruments [Line Items]  
DERIVATIVE INSTRUMENTS

7. DERIVATIVE INSTRUMENTS

 

In the normal course of business, ISQ OpenInfra HedgeCo, L.P. (the “HedgeCo”), a wholly-owned subsidiary of Series II, may enter into derivative contracts to achieve certain risk management objectives on behalf of Series II.

 

HedgeCo may enter into derivative instruments to hedge against foreign currency exchange rate risk on a portion or all of Series II’s non-U.S. dollar denominated investments. These instruments include forward currency contracts. Series II utilizes forward currency contracts to economically hedge the currency exposure associated with certain foreign-denominated investments. These derivative contracts are not designated as hedging instruments for accounting purposes. The use of foreign exchange contracts does not eliminate fluctuations in the price of the underlying investments recognized by Series II. Additionally, HedgeCo may enter into derivative instruments to hedge against other risks in Series II’s investments, including commodity price risk and equity price risk.

As a result of the use of derivative contracts, Series II is exposed to the risk that counterparties will fail to fulfill their contractual obligations. To mitigate such counterparty risk, HedgeCo enters into contracts with certain major financial institutions, primarily those with investment grade ratings. Counterparty credit risk is evaluated in determining the fair value of derivative instruments.

 

The following table summarizes the aggregate notional amount and fair value of the derivative instruments as of June 30, 2026. The notional amount represents the absolute value amount of the foreign exchange contracts:

 

Derivative Investments  Notional
Amount		   Fair Value 
Foreign Currency Contracts - Purchase U.S. dollar/Sell British pound  £5,698,882   $(8,304)
Foreign Currency Contracts - Purchase U.S. dollar/Sell Euro  €2,294,662    (15,601)
Foreign Currency Contracts - Purchase British pound/Sell  U.S. dollar  £119,454    (700)
Total       $(24,605)

 

The following table summarizes the average notional amount and gains and losses of the derivative instruments for the six months ended June 30, 2026:

 

Derivative Investments  Average
Notional
Amount		   Realized
gain (loss)		   Unrealized
gain (loss)		 
Foreign Currency Contracts - Purchase U.S. dollar/Sell British pound  £5,031,959   $
      -
   $(8,304)
Foreign Currency Contracts - Purchase U.S. dollar/Sell Euro  €2,294,662    
-
    (15,601)
Foreign Currency Contracts - Purchase British pound/Sell  U.S. dollar  £119,454    
-
    (700)
Total       $
-
   $(24,605)

 

Series II maintains a master netting agreement with each of its counterparties. Based on the terms outlined within each master netting agreement, there are no financial instruments available for offset as of June 30, 2026. Further, there have been no financial instruments or cash pledged or received as collateral as of June 30, 2026.