 | |
| Company type | Private |
|---|---|
| Industry | Private equity |
| Founded | 2012 |
| Founders |
|
| Headquarters | , U.S. |
Key people |
|
| Products | Infrastructure |
| AUM | US$ 40 billion (November 2024) |
| Website | isquaredcapital |
I Squared Capital is a private equity firm focusing on global infrastructure investments. The company invests in energy, utilities, transport and telecom projects in Asia, Europe, and the Americas. As of November 2024, I Squared Capital controls more than $40 billion in assets under management.
I Squared Capital was founded in 2012 by former senior executives at Morgan Stanley, including Sadek Wahba, Adil Rahmathulla, and Gautam Bhandari. [1] In 2015, the firm closed its first fund, ISQ Global Infrastructure Fund LP, with $3 billion in total commitments with investments from the Rhode Island State Investment Commission, the New Mexico Educational Retirement Board, and Mitsubishi Corporation. [2] As of June 2018, the firm's first fund had delivered 23 percent in gross annualized returns. [1]
Originally headquartered in New York, the firm relocated to Miami in 2018. [3] In September 2018, I Squared Capital also announced the closing of its ISQ Global Infrastructure Fund II after raising US$7 billion, exceeding an initial target for the fund of US$5 billion. [1] In April 2022, I Squared closed on ISQ Global Infrastructure Fund III LP at $15.5 billion. [4] [5]
In December 2023, Blue Owl Capital acquired a greater stake in I Squared by acquiring a portion of co-founder Rahmathulla's stake in the firm. [6] As of November 2024, I Squared Capital has $40 billion in assets under management. [5]
In December 2014, I Squared bought out the Jaipur Mahua Tollways, a 109-kilometer (68 mi) road project on National Highway 11 in Rajasthan, India. [7] In 2014, I Squared partnered with Enduring Hydro to form Cube Hydro Partners. [8] Through Cube Hydro, I Squared made a number of investments in the hydro-electric power industry. In February 2015, the firm acquired 10 run-of-the-river hydroelectricity plants located in Pennsylvania, Virginia and West Virginia, [9] [10] By July 2016, the firm controlled 14 hydroelectric power facilities in the US and, following subsequent acquisitions during this period, operated a total of 19 facilities located on 10 rivers in 5 states. [11]
I Squared has also invested in other sectors of the energy industry. In August 2015, the firm invested US$150 million into Amplus Energy Solutions Private Limited, an Indian rooftop solar power company. [12] In December 2015, I Squared purchased the 220 mi (350 km) pipeline gathering system owned by WPX Energy in the San Juan Basin in New Mexico. The purchase price was reported to be US$285 million. [13] In January 2016, I Squared acquired Lincoln Clean Energy which develops and operates wind farms across North America, including two in Texas. [14] The firm sold Lincoln Clean Energy to Ørsted for $580 million in August 2018. [15]
In March 2016, I Squared bought the Irish power company Viridian for about one billion euros. Viridian provides about 20% of the power to Ireland through gas-fired power stations and wind farms. [16] In October 2016, I Squared Capital agreed to acquire Duke Energy's hydroelectric and natural gas business in Peru, Chile, Ecuador, Guatemala, El Salvador, and Argentina for US$1.2 billion. [17] [18]
I Squared has made a number of investments in telecommunications infrastructure. In August 2017, the firm acquired the fixed-line phone business Hutchison Global Communications from Li Ka-shing's Hutchison Telecommunications for $14.5 billion Hong Kong Dollars ($1.86bn USD). Hutchison Global Communications operates a fiber-optic network that consists of over 1,400,000 km (870,000 mi) of cable and a WiFi network that includes over 25,000 hot-spots. [19]
In October 2020, I Squared agreed to buy the infrastructure division of GTT Communications for US$2.15 billion. [20] The acquisition included the submarine fiber network, data center infrastructure and services of GTT Communications in Europe and North America. [21] In 2021, I Squared spun out of the assets acquired from GTT Communications as EXA Infrastructure, a standalone company based in London which, at the time, controlled 103,000 km (64,000 mi) of fiber optic cable and eight subsea cables, connecting 300 cities and 14 data centers. [22]
In March 2021, I Squared Capital announced that its £2.3 billion ($3.4 billion) joint bid with TDR Capital to acquire the British mobile power company Aggreko was accepted. [23] [24] In May 2023, I Squared acquired Rentco Transport Equipment Rentals, an Australian truck and trailer leading company. [25] In October 2023, I Squared Capital reached a deal with Deutsche Bahn to acquire UK transportation company Arriva. [26] The transaction was completed in June 2024 following ratification of the deal by the European Commission. [27]
In January 2024, I Squared bought 49% of Órigo Energia, a Brazilian renewable energy company which builds and operates solar farms near cities. [28]
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