I Squared Capital

I Squared Capital is an infrastructure-focused private equity firm headquartered in Miami that invests in energy, utilities, transport, and digital infrastructure across the Americas, Europe, and Asia. The firm targets long-term, cash-generating assets and partners with institutional investors such as pension funds and sovereign wealth funds to acquire and operate assets. Its activities intersect with major sectors and institutions including renewable energy platforms, regulated utilities, and public-private partnerships involving multinational corporations and development banks.

History

The firm was founded in 2012 amid a wave of infrastructure investment led by managers with experience at firms and institutions like Goldman Sachs, Morgan Stanley, Carlyle Group, and BlackRock. Early fundraising rounds drew commitments from sovereign and public investors such as Canada Pension Plan Investment Board, Abu Dhabi Investment Authority, Qatar Investment Authority, and other global pension funds. Expansion followed through establishing regional offices in financial hubs including London, New Delhi, Hong Kong, and Los Angeles, enabling transactions across markets governed by frameworks like European Union infrastructure directives and bilateral investment treaties involving countries such as India, Mexico, and Brazil.

Investment Strategy and Portfolio

I Squared Capital pursues sector-focused, control-oriented investments in regulated and contracted infrastructure assets spanning electricity generation and transmission, natural gas pipelines, broadband and fiber networks, toll roads, and renewables. The firm emphasizes value creation through operational improvements, regulatory engagement with agencies akin to Federal Energy Regulatory Commission and Ofgem, and capital deployment into technologies championed by institutions such as International Renewable Energy Agency and World Bank. Portfolio companies often interact with corporate partners including Siemens, General Electric, ABB, and utility operators like National Grid and Enel. The strategy balances core, yield-producing assets with growth platforms in areas championed by venture and strategic investors such as SoftBank and Google.

Notable Projects and Transactions

Major transactions include investments in power transmission lines, renewable energy portfolios, and digital infrastructure acquisitions often rivaling bids from Brookfield Asset Management, KKR, Macquarie Group, and Antin Infrastructure Partners. The firm has acquired stakes in assets comparable to projects involving TransCanada Corporation, Iberdrola, and Orsted-like developers, while participating in privatizations and concessions in markets influenced by agreements like the North American Free Trade Agreement transitions and European Green Deal initiatives. Noteworthy closures involved syndication with global lenders and insurers such as HSBC, JPMorgan Chase, AXA, and multilateral agencies including Asian Development Bank and European Investment Bank.

Organizational Structure and Leadership

Leadership comprises founding partners and senior investment professionals with prior experience at major banks and asset managers including Goldman Sachs, Morgan Stanley, UBS, and Credit Suisse. Governance typically includes an executive committee, investment committee, and regional leadership teams operating within jurisdictions like United Kingdom, India, and Chile. The firm’s advisory network and board-level relationships connect it to executives and former officials from entities such as International Finance Corporation, U.S. Department of the Treasury, and former regulators from agencies like Securities and Exchange Commission. Human capital strategies mirror best practices from finance institutions including Blackstone and KKR with in-house legal, tax, and compliance teams.

Financial Performance and Fundraising

I Squared Capital’s fundraising campaigns have targeted institutional investors including California Public Employees' Retirement System-type plans, Teachers' Retirement System funds, and sovereign investors similar to Singapore's GIC and Norway Government Pension Fund Global. Funds have sought capital commitments measured in billions of dollars, competing with peers such as Brookfield Renewable Partners, Global Infrastructure Partners, and Stonepeak Partners for large-scale mandates. Performance reporting references metrics familiar to limited partners and consultants such as Mercer, Cambridge Associates, and Preqin, emphasizing internal rate of return and yield profiles relative to benchmarks tied to indices like the S&P Global Infrastructure Index.

Category:Private equity firms