CPP Investments Acquires 50% Stake in Peru's Inkia Energy
The Canada Pension Plan Investment Board has signed a deal to invest in Peruvian private power generation company Inkia Energy alongside I Squared Capital.
Under the agreement, CPP Investments has agreed to acquire a 50 per cent stake in Inkia at a total enterprise value of US$3.4 billion.
I Squared, which has been invested in Inkia since 2017, will hold the other 50 per cent.
Inkia operates a diversified portfolio through its subsidiaries Kallpa Generación S.A. and Orazul Energy Peru S.A.
Bill Rogers, managing director and head of sustainable energies at CPP Investments, says Inkia operates a resilient power generation platform that aligns well with the fund's long-term approach to investing in high-quality businesses.
The deal is subject to closing conditions and government approvals.
Earlier today CPP Investments issued a press release stating it will invest in Inkia alongside I Squared Capital:
TORONTO, CANADA & MIAMI, FLORIDA (February 12, 2026) – Canada Pension Plan Investment Board (“CPP Investments”) today announced that it will invest alongside I Squared Capital (“I Squared”) in Inkia Energy (“Inkia”), a Peruvian private power generation company in Peru. Under the terms of the transaction, CPP Investments has agreed to acquire a 50% ownership interest in Inkia at a total enterprise value of US$3.4 billion, with the remaining 50% ownership stake to be acquired by an I Squared-led continuation vehicle.
Inkia operates a diversified and reliable generation portfolio of 2.6GW through its subsidiaries Kallpa Generación S.A. and Orazul Energy Peru S.A., and plays a critical role in supporting Peru’s energy demand driven by a world-class mining sector. CPP Investments and I Squared share a long-term strategic vision to partner in the development of Inkia’s more than 4GW pipeline of wind, solar, gas, and battery storage projects, supporting its continued growth
“Inkia operates a highly resilient power generation platform that aligns well with our long-term approach to investing in high-quality businesses that can deliver attractive risk-adjusted returns for the CPP Fund,” said Bill Rogers, Managing Director, Head of Sustainable Energies, CPP Investments. “The transaction reflects CPP Investments’ continued focus on long-duration power generation assets with strong governance and sustainability practices, alongside our experienced partner I Squared.”
I Squared has been invested in Inkia since 2017, supporting the company’s transformation into a scaled, diversified and strategically important generation platform. Under I Squared’s leadership, Inkia successfully divested all non-core assets across 10 jurisdictions in Latin America while expanding its core Peruvian generation business from 1.6GW to 2.6GW today. I Squared will continue to play an active role in Inkia’s governance and strategic direction.
“Inkia is a developer at its core and represents exactly the kind of essential infrastructure platform we seek to build and grow over the long term,” said Gautam Bhandari, Global Chief Investment Officer and Managing Partner, I Squared. “This partnership with CPP Investments reflects our shared conviction in the long-term fundamentals of Peru’s power market and Inkia’s ability to play a leading role in meeting the country’s evolving energy needs. Together, we see significant opportunity to continue investing in the platform and supporting Peru’s energy transition.”
CPP Investments has been investing in Latin America since 2006 and has a disciplined approach to investing across asset classes in the region. I Squared has a long-standing presence in Latin American infrastructure, with deep operating experience across energy, utilities and transportation.
The transaction is subject to closing conditions and government approvals.
About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 22 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. On September 30, 2025, the Fund totaled C$777.5 billion. For more information, please visit www.cppinvestments.com or follow CPP Investments on LinkedIn, Instagram or on X @CPPInvestments.
About I Squared Capital
I Squared Capital is a leading independent global infrastructure investor dedicated to the mid-market, managing more than $50 billion in assets. Founded in 2012, I Squared has evolved into one of the most diverse infrastructure investors in the world with investments across power & utilities; transportation & logistics; digital infrastructure; environmental infrastructure and social infrastructure, providing essential services to millions of people around the world. Today, our portfolio includes over 100 companies operating in more than 70 countries. Headquartered in Miami, the firm has a global team across offices in Abu Dhabi, London, Munich, New Delhi, São Paulo, Singapore, Sydney and Taipei. Learn more at www.isquare Capitaldcapital.com.
When you think of Peru, you think of Lima, Machu Picchu, Cusco, Arequipa, the Sacred Valley and other beautiful sites to visit for the ultimate digital detox.
You don't think "power generation" but Peru is growing fast and needs power to eep up with growing demand.
It's an interesting asset for CPP Investments to acquire and they obviously did their homework:
“Inkia operates a highly resilient power generation platform that aligns well with our long-term approach to investing in high-quality businesses that can deliver attractive risk-adjusted returns for the CPP Fund,” said Bill Rogers, Managing Director, Head of Sustainable Energies, CPP Investments. “The transaction reflects CPP Investments’ continued focus on long-duration power generation assets with strong governance and sustainability practices, alongside our experienced partner I Squared.” ...
“Inkia is a developer at its core and represents exactly the kind of essential infrastructure platform we seek to build and grow over the long term,” said Gautam Bhandari, Global Chief Investment Officer and Managing Partner, I Squared. “This partnership with CPP Investments reflects our shared conviction in the long-term fundamentals of Peru’s power market and Inkia’s ability to play a leading role in meeting the country’s evolving energy needs. Together, we see significant opportunity to continue investing in the platform and supporting Peru’s energy transition.”
CPP Investments loves long duration power assets, just ask Bill Rogers, his team is always looking to acquire more all over the world.
The biggest risk I see here is currency risk which CPP Investments can hedge if it wants (don't know much about the Peruvian sol).
As far as I Squared Capital, it has experience mid-market experience and an innovative approach to building investment platforms.
The firm invests globally including emerging markets and has a long list of successful investments.
In short, CPP Investments chose the right partner to enter into Peru's power generation business.
Below, Dr. Sadek Wahba, Chairman & Managing Partner of I Squared Capital, Juan Carlos Monterrey, Special Representative for Climate Change & National Climate Change Director of the Ministry of Environment of the Government of Panama, Gregorio Esteban, Vice Chairman of Santa Ana Global, and Stephen Keppel, President of the PVBLIC Foundation, join Jill Malandrino on Nasdaq TradeTalks to discuss sustainable and scalable infrastructure and climate investing solutions (4 months ago).
Next, I Squared Capital’s Sadek Wahba on why governments must set the rules but let private investors take the risk in future infrastructure projects (8 months ago).
Third, Sadek Wahba talks to CNBC's Diana Olick on how sustainable infrastructure is critical to deal with an earth in crisis (2 years ago).
Lastly, Machu Picchu is a testament to the power and ingenuity of the Inca empire. Built without the use of mortar, metal tools, or the wheel, Machu Picchu stands as an archaeological wonder of the ancient world. But why was it built—and deserted?
Comments
Post a Comment