Canada Pension Plan Invests in Inkia Energy
In a significant move within the global energy infrastructure sector, the Canada Pension Plan Investment Board (CPPIB), also known as CPP Investments, has announced its agreement to acquire a 50% ownership stake in Inkia Energy. The deal values the Peru-headquartered power generation company at a total enterprise value of US$3.4 billion.
A Strategic Partnership Focused on Peru solar investment
This acquisition is structured as a strategic alliance with the American private equity firm I Squared Capital, which will acquire the remaining 50% interest in Inkia Energy. I Squared Capital will hold its stake through a continuation vehicle, partnering with CPP Investments to manage the asset going forward.
This joint venture underscores a growing trend of major pension funds partnering with private equity specialists to invest in large-scale, essential infrastructure assets. The transaction saw I Squared Capital receiving legal counsel from Gibson Dunn.
About Inkia Energy: A Peru solar investment Target
Inkia Energy is a prominent power generation company based in Peru, operating as an Independent Power Producer (IPP) in the region. The company’s portfolio is a key component of the energy landscape in Latin America. While specific details about Inkia’s complete asset portfolio were not highlighted in the initial announcements, its position as a major regional IPP makes it a strategic acquisition for investors seeking stable, long-term returns in the energy sector.
Significance of the Peru solar investment
For the Canada Pension Plan, this investment represents a substantial addition to its infrastructure portfolio and a strategic expansion of its footprint in the Americas. Investing in a major power producer like Inkia Energy aligns with the fund’s long-term objective of securing stable, inflation-protected returns to support its pension obligations for millions of Canadians. The partnership with an experienced infrastructure investor like I Squared Capital further solidifies the strategic foundation of this major transaction.
