I Squared Capital is a private equity firm focusing on global infrastructure investments. The company invests in energy, utilities, transport and telecom projects in
North America
North America is a continent in the Northern Hemisphere and almost entirely within the Western Hemisphere. It is bordered to the north by the Arctic Ocean, to the east by the Atlantic Ocean, to the southeast by South America and the Car ...
,
Europe
Europe is a large peninsula conventionally considered a continent in its own right because of its great physical size and the weight of its history and traditions. Europe is also considered a Continent#Subcontinents, subcontinent of Eurasia ...
and select high growth economies, such as
India
India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
and
China
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
.
History
Founded in 2012 and headquartered in
Miami
Miami ( ), officially the City of Miami, known as "the 305", "The Magic City", and "Gateway to the Americas", is a East Coast of the United States, coastal metropolis and the County seat, county seat of Miami-Dade County, Florida, Miami-Dade C ...
, the firm has offices in
Hong Kong
Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China ( abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delt ...
,
Houston
Houston (; ) is the most populous city in Texas, the most populous city in the Southern United States, the fourth-most populous city in the United States, and the sixth-most populous city in North America, with a population of 2,304,580 in ...
,
London
London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a majo ...
,
New Delhi
New Delhi (, , ''Naī Dillī'') is the capital of India and a part of the National Capital Territory of Delhi (NCT). New Delhi is the seat of all three branches of the government of India, hosting the Rashtrapati Bhavan, Parliament House ...
,
New York and
Singapore
Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, borde ...
. Several of its executives were previously senior executives at
Morgan Stanley
Morgan Stanley is an American multinational investment management and financial services company headquartered at 1585 Broadway in Midtown Manhattan, New York City. With offices in more than 41 countries and more than 75,000 employees, the fir ...
, including
Sadek Wahba
Sadek Wahba (born 1965) is an American economist and investor who focuses on infrastructure investments. He is a frequent commentator on the need for more investment in infrastructure to promote sustainable economic growth. He is the founder and ...
, Adil Rahmathulla,and Gautam Bhandari.
In September 2018, I Squared Capital announced the closing of its ISQ Global Infrastructure Fund II at the US$7 billion legal cap, exceeding an initial target for the fund of US$5 billion. The fund received commitments from over 100 institutional investors with oversubscribed demand and a re-up rate over 80 percent from Fund I.
Investments
The firm has made investments in the U.S. hydroelectric power industry, in China's waste water treatment industry, and in India, including a majority stake in the 109-kilometer
Jaipur
Jaipur (; Hindi: ''Jayapura''), formerly Jeypore, is the capital and largest city of the Indian state of Rajasthan. , the city had a population of 3.1 million, making it the tenth most populous city in the country. Jaipur is also known ...
Mahua Tollways in the northwestern state of
Rajasthan
Rajasthan (; lit. 'Land of Kings') is a state in northern India. It covers or 10.4 per cent of India's total geographical area. It is the largest Indian state by area and the seventh largest by population. It is on India's northwestern s ...
, and a stake in the rooftop solar power company Amplus Energy Solutions Private Limited.
I Squared's hydro-electric power investments have been made through its portfolio company Cube Hydro Partners, which was formed in January 2014. Cube Hydro owns and operates 14 hydroelectric power facilities in the United States. and purchased four more plants in 2016.
Kristina M. Johnson
Kristina M. Johnson (born May 7, 1957) is an American business executive, engineer, academic, and former government official who served as the 13th chancellor of the State University of New York from September 2017 until June 2020. In June 202 ...
, a former undersecretary for energy at the U.S. Department of Energy, is the CEO of Cube Hydro.
On 31 December 2015, I Squared purchased the 220-mile pipeline gathering system owned by
WPX Energy in the
San Juan Basin
The San Juan Basin is a geologic structural basin located near the Four Corners region of the Southwestern United States. The basin covers 7,500 square miles and resides in northwestern New Mexico, southwestern Colorado, and parts of Utah ...
in
New Mexico
)
, population_demonym = New Mexican ( es, Neomexicano, Neomejicano, Nuevo Mexicano)
, seat = Santa Fe
, LargestCity = Albuquerque
, LargestMetro = Tiguex
, OfficialLang = None
, Languages = English, Spanish ( New Mexican), Navajo, Ker ...
. The purchase price was reported to be US$285 million.
In March 2016, the company struck a deal to buy the Irish power company Viridian for about one billion
euro
The euro ( symbol: €; code: EUR) is the official currency of 19 out of the member states of the European Union (EU). This group of states is known as the eurozone or, officially, the euro area, and includes about 340 million citizens . ...
s. Viridian provides about 20% of the power to Ireland.
In October 2016, I Squared Capital entered into an agreement with
Duke Energy International's Latin American division to purchase all of the assets (excluding those in Brazil) for US$1.2 billion. The investment will add hydroelectric and natural gas generation plants, transmission infrastructure, and natural gas processing facilities, totaling 2,300 megawatts of power. The assets are located in
Peru
, image_flag = Flag of Peru.svg
, image_coat = Escudo nacional del Perú.svg
, other_symbol = Great Seal of the State
, other_symbol_type = Seal (emblem), National seal
, national_motto = "Fi ...
,
Chile
Chile, officially the Republic of Chile, is a country in the western part of South America. It is the southernmost country in the world, and the closest to Antarctica, occupying a long and narrow strip of land between the Andes to the east a ...
, Ecuador, Guatemala, El Salvador, and Argentina. The transaction for the purchase of these assets from Duke Energy was completed in December 2016.
Orazul Energy Egenor S. en C. por A., a Lima, Peru-based subsidiary or Orazul Energy and a portfolio company of I Squared Capital announced on May 2, 2017 that the company had closed on a $550 million offering of 5.625% 10-year bonds due in 2027.
Li Ka-shing, Hong Kong's richest man, sold his
Hutchison Telecommunications fixed-line phone business for $14.5 billion Hong Kong Dollars ($1.86bn USD).
Hutchison Global Communications runs an extensive fiber-optic network that connects to over 14,000 buildings. It is also a major provider of WiFi services to Hong Kong. HGC's fiber optic network consists of over 1.4 million kilometers of cable and its WiFi network includes over 25,000 hot-spots. The company's extensive international network has four highly prized land routes into mainland China and it has global reach through multiple sub-marine and terrestrial cable systems.
In August 2018, I Squared entered into an agreement to sell 100 percent of its equity interest in Lincoln Clean Energy LLC to
Ørsted for an enterprise valuation of $580 million. Lincoln Clean Energy is a leasing U.S.-based developer, owner, and operator or wind farms.
In November 2018, I Squared Capital, along with Blackstone Energy and EagleClaw formed a
Delaware Basin
The Delaware Basin is a geologic depositional and structural basin in West Texas and southern New Mexico, famous for holding large oil fields and for a fossilized reef exposed at the surface. Guadalupe Mountains National Park and Carlsbad Cave ...
midstream partnership. The firm invested over US$500 million in cash and contributed its
Delaware Basin
The Delaware Basin is a geologic depositional and structural basin in West Texas and southern New Mexico, famous for holding large oil fields and for a fossilized reef exposed at the surface. Guadalupe Mountains National Park and Carlsbad Cave ...
midstream portfolio company, Pinnacle Midstream.
In February 2020, the company entered into an agreement to sell its stake in Chenya Energy, a solar development company in Taiwan, to Marubeni Corporation, a Japanese firm.
In October 2020, they agreed to buy the infrastructure division of
GTT Communications
GTT Communications, Inc. (GTT), formerly Global Telecom and Technology, is a multinational telecommunications and internet service provider company with headquarters in McLean, Virginia, and incorporated in Delaware. GTT operates a Tier 1 IP ne ...
for $2.15 billion
Notable Advisors
Boutros Boutros-Ghali
Boutros Boutros-Ghali (; , ar, بطرس بطرس غالي ', ; 14 November 1922 – 16 February 2016) was an Egyptian politician and diplomat who served as the sixth Secretary-General of the United Nations (UN) from 1992 to 1996. An academic ...
, former Secretary-General of the
United Nations
The United Nations (UN) is an intergovernmental organization whose stated purposes are to maintain international peace and international security, security, develop friendly relations among nations, achieve international cooperation, and be ...
and Egypt's Minister of Foreign Affairs, served as an advisor to the fund. In 2013, Jonson Cox, the chairman of the UK's
Water Services Regulation Authority
The Water Services Regulation Authority, or Ofwat, is the body responsible for economic regulation of the privatised water and sewerage industry in England and Wales. Ofwat's main statutory duties include protecting the interests of consumers, secu ...
, was appointed as a senior policy advisor of I Squared.
Tom J. Donohue, President & CEO of the
United States Chamber of Commerce
The United States Chamber of Commerce (USCC) is the largest lobbying group in the United States, representing over three million businesses and organizations. The group was founded in April 1912 out of local chambers of commerce at the urgin ...
and Ginger Lew, former Senior Counsel to White House on Economic Policy, are advisors to I Squared.
Awards
In 2016, I Squared won six awards from ''Infrastructure Investor'', including "Global Personality of the Year", "Global Fund Manager of the Year," "Global Fundraising of the Year," "North America Fundraising of the Year," "North America Fund Manager of the Year," and "Asia Pacific Transport Investor of the Year."
In 2018, I Squared won six awards from ''Infrastructure Investor'', including "Global Personality of the Year" for
Sadek Wahba
Sadek Wahba (born 1965) is an American economist and investor who focuses on infrastructure investments. He is a frequent commentator on the need for more investment in infrastructure to promote sustainable economic growth. He is the founder and ...
, "Global Fund Manager of the Year," Global Equity Fundraising of the Year," "Global Transport Investor of the Year," "North America Fund Manager of the Year," and "North America Energy Investor of the Year." It was also named "Energy Private Equity Firm of the Year" at the 2018
Private Equity International
''Private Equity International'' (PEI) is a global insight, analysis and data provider for the private equity industry, with a core focus on the relationship between investors and fund managers: the LP-GP nexus.
Launched in December 2001, the tit ...
Awards, edging out
Actis and
Ares Management
Ares Management Corporation is an American global alternative investment manager operating in the credit, private equity and real estate markets. The company was founded in 1997 and is headquartered in Los Angeles, California, with additional of ...
.
References
{{reflist, 2
American companies established in 2012
Financial services companies established in 2012
Financial services companies of the United States
2012 establishments in Florida