I Squared Capital, an infrastructure-focused global private equity firm, intends to deploy up to $2 billion in capital in the infrastructure and real estate assets owned by the Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia, according to a preliminary agreement between the two firms.
As part of the non-binding Memorandum of Understanding, the US-based PE firm will work with PIF’s portfolio companies to identify opportunities in digital infrastructure and district cooling, both of which are critical enablers of the real estate sector. It is targeting to allocate up to $1 billion in each of these areas with the option to scale across additional related business themes, according to a statement.
“PIF presents an unprecedented pipeline of real estate and infrastructure projects in the modern world, projects that continue to attract leading investors, foster sustainable value creation and generate commercially attractive returns,” said Saad Alkroud, head of local real estate investments at PIF. “This MoU brings together PIF’s capabilities, scale and ecosystems, alongside I Squared’s operational expertise and proven record in the infrastructure sector.”
The deal is a part of PIF’s strategy to bring in global investors to support its portfolio and maximize their value, as the Saudi sovereign wealth fund accelerates projects linked to the Kingdom's Vision 2030 economic diversification programme. It expects the partnership to speed up project delivery and increase the contribution of third‑party capital.
“With this MoU, we are evolving from partnership to action — with a shared conviction that PIF’s and Saudi Arabia’s infrastructure story is one of the most compelling in the world, and we look forward to contributing our global expertise alongside PIF in the Kingdom,” said Sadek Wahba, chairman and managing partner at I Squared Capital.
The announcement comes less than a month after I Squared and the US International Development Finance Corporation (DFC) said they plan to establish a $3 billion investment platform to develop energy infrastructure across South and Southeast Asia. Both entities will commit $1.5 billion to the platform.
Elsewhere in Asia, I Squared unveiled a $1 billion power transmission platform for India, a development which was first reported by VCCircle. The PE firm is also raising a $3-billion fund for emerging growth markets including India.
I Squared, founded in 2012 and headquartered in Miami, manages around $60 billion in assets with investments spanning energy, utilities, transport, digital infrastructure, and other sectors across more than 70 countries. The firm has been active in Asia since 2014, deploying over $9 billion in the region.
I Squared has been expanding its infrastructure activities, including recent fundraising progress toward a $15 billion target for its flagship fund and other platform investments in areas such as renewables and data centres.