CPP Investments to Acquire 50% Stake in Inkia Energy for $3.4B

CPP Investments' acquisition of a 50% stake in Inkia Energy for $3.4 billion alongside I Squared Capital represents a significant investment in South America's power generation sector. The deal provides CPP Investments with immediate access to Inkia's existing 2.6 GW operating capacity and a partnership in developing a substantial 4GW pipeline of renewable and gas-fired projects. This collaboration with I Squared Capital, an experienced energy sector investor, aims to capitalize on the growing demand for reliable and sustainable power in Peru. The structure of the deal, with I Squared retaining the other 50% through a continuation vehicle, suggests a long-term commitment to Inkia's growth and the potential for further value creation. The investment aligns with CPP Investments' strategy of diversifying its portfolio with infrastructure assets that offer stable, long-term returns. Inkia Energy's diversified portfolio of wind, solar, gas, and battery storage projects positions it well to meet Peru's evolving energy needs. The deal also highlights the increasing interest from institutional investors in renewable energy projects in emerging markets, driven by the global transition towards cleaner energy sources. The partnership between CPP Investments and I Squared Capital brings together significant financial resources and operational expertise, increasing the likelihood of successful project development and long-term value creation for both parties.