The Canada Pension Plan Investment Board (CPP Investments) has announced that it will invest alongside I Squared Capital in Inkia Energy, a privately held Peruvian power generation company. Under the terms of the agreement, CPP Investments will acquire a 50% stake in Inkia in a transaction valuing the company at US$3.4 billion. The remaining 50% will be held by a continuation vehicle led by I Squared.
Inkia operates a diversified and reliable 2.6 GW generation portfolio in Peru through its subsidiaries Kallpa Generación S.A. and Orazul Energy Perú S.A. The company plays a critical role in meeting the country’s electricity demand, which is largely driven by a world-class mining sector.
CPP Investments and I Squared share a long-term strategic vision to expand Inkia’s project pipeline, which exceeds 4 GW and includes wind power, solar PV, natural gas-fired generation and battery energy storage. The partners aim to strengthen the company’s position in Peru’s evolving power market while supporting grid reliability and the country’s broader energy transition.
“Inkia operates a highly resilient power generation platform that aligns closely with our long-term approach of investing in high-quality businesses capable of delivering attractive risk-adjusted returns for the CPP Fund,” said Bill Rogers, Managing Director and Head of Sustainable Energies at CPP Investments. “This transaction reflects our continued focus on long-duration power generation assets with strong governance and sustainability practices, alongside our experienced partner I Squared.”
I Squared has invested in Inkia since 2017, supporting its transformation into a scalable, diversified and strategically important generation platform. During this period, Inkia divested all non-core assets across 10 Latin American jurisdictions and expanded its core Peruvian generation capacity from 1.6 GW to the current 2.6 GW.
I Squared will continue to play an active role in Inkia’s governance and strategic direction.
“Inkia is fundamentally a development-led company and represents exactly the type 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 Capital.
“This partnership with CPP Investments reflects our shared conviction in the long-term fundamentals of the Peruvian power market and Inkia’s ability to play a leading role in meeting the country’s evolving energy needs. Together, we see significant opportunities to continue investing in the platform and supporting Peru’s energy transition,” he added.
CPP Investments has been active in Latin America since 2006, pursuing a disciplined approach across multiple asset classes in the region. I Squared Capital also has a longstanding track record in Latin American infrastructure, with extensive operational expertise in energy, utilities and transport.
The transaction remains subject to customary closing conditions and regulatory approvals.
