Acquisition
CPP Investments and I Squared Capital Each Take 50% of Inkia Energy in $3.4bn Peru Power Deal
•February 13, 2026
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Why It Matters
The deal expands long‑duration, sustainable power assets in a high‑growth market, bolstering CPP Investments' exposure to Latin America while supporting Peru’s shift to cleaner energy sources.
Key Takeaways
- •CPP Investments acquires 50% of Inkia for $3.4bn.
- •Inkia's portfolio now 2.6 GW, 4 GW pipeline.
- •Deal deepens Canadian capital in Peru's power sector.
- •Continuation fund gives I Squared investors liquidity.
- •Supports Peru's mining‑driven economy and energy transition.
Pulse Analysis
Peru’s power landscape is rapidly evolving, driven by surging demand from its mining sector and a national push toward cleaner energy. CPP Investments’ entry via Inkia Energy marks one of the largest foreign infrastructure commitments in the country, providing the pension fund with a stable, inflation‑linked cash flow stream. By securing half of Inkia’s 2.6 GW operating assets and tapping a 4 GW development pipeline, CPP positions itself to benefit from both immediate generation revenues and long‑term renewable growth.
The partnership with I Squared Capital adds strategic depth. I Squared’s continuation fund structure allows original investors to exit while retaining a foothold in Inkia’s expansion, a model gaining traction as higher interest rates temper traditional private‑equity exits. This arrangement not only offers liquidity but also aligns incentives for continued operational scaling, ensuring that Inkia can accelerate its wind, solar, gas and battery projects without diluting ownership control.
From a geopolitical perspective, the transaction reflects broader trends of North American capital flowing into Latin America’s critical infrastructure, counterbalancing Chinese influence in the region. Peru’s recent designation as a Major Non‑NATO Ally further cements its strategic importance to U.S. policy goals. For CPP Investments, the move diversifies its global portfolio, reinforces its ESG credentials, and taps a market where energy demand is set to outpace supply, promising robust returns for pension beneficiaries.
Deal Summary
Canada Pension Plan Investment Board’s investment arm, CPP Investments, agreed to acquire a 50% stake in Peruvian power producer Inkia Energy, valuing the company at $3.4bn including debt. The acquisition is partnered with I Squared Capital, which will hold the remaining 50% through a continuation vehicle. The deal aims to expand Inkia’s 2.6GW generation portfolio and support Peru’s energy transition.
Article
Source: Wealth Professional Canada – ETFs
Canadian pension giant joins I Squared to scale Peru’s grid and advance its energy transition
Peru’s rising power needs and energy transition are drawing fresh Canadian pension capital into a US$3.4 bn infrastructure bet.
The Canada Pension Plan Investment Board’s investment arm has agreed to acquire a 50 percent stake in Inkia Energy, a private Peruvian power producer based in Lima, alongside I Squared Capital, in a deal that values the company at US$3.4 bn including debt.
CPP Investments said it will take half of Inkia at an enterprise value of US$3.4 bn, with an I Squared‑led continuation vehicle holding the other 50 percent.
Inkia operates a 2.6 GW generation portfolio through Kallpa Generación S.A. and Orazul Energy Peru S.A. and plays a key role in supplying electricity to Peru’s mining‑driven economy.
The company also has a development pipeline of more than 4 GW of wind, solar, gas and battery storage projects, positioning it to support Peru’s evolving energy mix.
Bill Rogers, managing director and head of Sustainable Energies at CPP Investments, said Inkia “operates a … power generation platform that aligns well with our long‑term approach to investing.”
He added that the deal “reflects CPP Investments' continued focus on long‑duration power generation assets with … governance and sustainability practices, alongside our experienced partner I Squared.”
I Squared, a Miami‑based infrastructure manager, has invested in Inkia since 2017 and has supported its transformation into a scaled, diversified and strategically important generation platform.
Under I Squared’s leadership, Inkia sold non‑core assets across 10 Latin American jurisdictions and expanded its core Peruvian generation business from 1.6 GW to 2.6 GW.
The Wall Street Journal reported that I Squared plans to bring its ownership to 50 percent through a continuation fund it leads, giving investors in the original fund a chance to cash out while the firm remains invested.
The paper noted that such continuation funds have become more common as higher interest rates make some private‑equity managers less willing to sell companies or pursue listings.
“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 at I Squared.
He said the partnership with CPP Investments reflects a shared belief in the long‑term fundamentals of Peru’s power market and Inkia’s ability to help meet the country’s changing energy needs, while supporting Peru’s energy transition.
The Wall Street Journal reported that investment firms have been targeting infrastructure deals outside the US that align with US policy goals, and described Peru as a battleground where the US and China compete for influence through infrastructure and strategic ties.
The paper also noted that the US recently designated Peru a “Major Non‑NATO Ally.”
CPP Investments has been investing in Latin America since 2006 with a disciplined approach across asset classes, according to the fund.
I Squared specialises in infrastructure and has long‑standing experience in Latin American energy, utilities and transportation, according to the firm.
CPP Investments said the Inkia transaction remains subject to closing conditions and government approvals.
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