I Squared Capital’s Post

Today marks two new investments in a very similar sector but on different sides of the Atlantic. We are proud to announce our investments in Aurora Utilities Limited and Priority Power The energy utility sector is in a #transition itself: energy prices are more volatile, grid connectivity is less stable but demand for energy is on the up, driven by the AI revolution and its need to supply power hungry data centers with sustainable energy sources.    Aurora and Priority Power are classic I Squared investments: each one highlights our commitment to investing in innovative, forward-thinking companies who are helping shape 21st century infrastructure.     Aurora is an Independent Distribution Network Operator ("#IDNO"). The company owns and operates its own electricity distribution network in the UK connecting customers to "last mile" infrastructure. The electrical equipment involved includes switchgear, transformers, circuit breakers and power cables that will support new technologies being added to the grid like EV charging stations, battery  storage sites, commercial and industrial business electrification as well as new residential housing developments. IDNOs are highly regulated businesses that take long-term, index-linked revenues from energy suppliers who will use Aurora’s equipment to distribute electricity to their customers. https://lnkd.in/eswv99jC   Priority Power is at the forefront of the future of electric utilities in the U.S. Based in Texas with commercial and industrial customers in 40 U.S. states, Priority Power helps its customers reduce costs, manage energy price volatility and progress sustainability goals. Priority Power provides insights, data, services and solutions that helps their customers monitor, measure and manage their energy consumption and if needed, design and construct new private transmission and distribution assets to reduce costs and accelerate expansion plans. All the while, Priority Power operates with sustainability in mind, - since 2017 the company has enabled clients to avoid emitting 8.8 million metric turns of CO2e. https://lnkd.in/evX4KaCZ   These two investments embody I Squared’s commitment to developing sustainable infrastructure worldwide. We are energized (pun fully intended) to be working with the quality teams at Aurora and Priority Power and excited for what comes next. #infrastructure #investment #deals #energy #utility #UK #US #rigor #analytical #energized

 I Squared is excited to announce that Jan Mende will join the firm next month with responsibility for covering key investment partners on the US West Coast. Jan joins I Squared from Callan, one of the largest independently owned investment consulting firms in the US, where she was a senior vice president working with institutional investors across their real assets portfolios. In the last twelve months, I Squared has expanded and evolved at the fastest rate in the firm's history, nowhere more so than in the sales and distribution function. The team has seen a significant remodeling with over 15 new employees hired globally to ensure the distribution capabilities of I Squared match the expanded product suite and long-term ambitions of the firm. https://lnkd.in/e4njYdPq

I Squareds, co-Founder, CIO and Managing Partner, Gautam Bhandari contributes to this Pensions & Investments sponsored feature on why #infrastructure is an increasingly important part of the porfolio of a growing number of U.S. public pension funds. Find out more here: https://lnkd.in/er_SX7Fu Nearly three years after the #IIJA was signed into law, #infrastructure remains top of mind for #institutional #investors. And for good reason. The asset class is powered by at least three global mega-trends: 1) the need for upgraded transportation infrastructure and power grids; 2) technological advancements, such as artificial intelligence; 3) the transition to renewable energy sources. In addition, infrastructure not only delivers risk-adjusted returns comparable to traditional assets, but also diversification and resiliency in the face of inflation and higher interest rates. Yet as investors explore the vast opportunity set, some questions have arisen amid last year’s slowdown in deal activity and shifting macro conditions. Is it time to pause on allocating to infrastructure? Are the recent valuation concerns expected to persist? Alongside other leading managers, Gautaum cuts through the complexities, shares his investment approach and highlights the macro and market tailwinds that underpin the asset class.

I Squared is delighted to announce that Mubadala, Qatar Investment Authority and other leading global investors have raised in excess of $600 million for TEN (Transportation Equipment Network). Gautam Bhandari, I Squared CIO and Managing Partners said: "This transaction is a win for TEN, for our investors and for I Squared’s global transportation franchise." Trailers play a critical role in complex supply chain networks by meeting customers’ needs for operational and contractual flexibility. TEN is North America’s second largest full- service trailer lessors with a combined fleet of over 83,000 trailers with locations across most major logistics hubs. Rebranded “TEN” earlier this year, I Squared’s build out of this trailer-leasing platform began in March 2021 with the acquisition of Star Leasing and subsequent acquisitions of Cooling Concepts in May 2022, North East Trailer Services (NETS) in July 2023 and Commercial Trailer Leasing (CTL) in September 2023. The combined group provides services including integrated leasing, maintenance, advanced technological solutions, consultation services and innovative fleet electrification offerings across numerous industry verticals. In building the TEN platform, I Squared has improved purchasing power and clarified strategic objectives for the firm. Since the platform build out started, TEN has now more than quadrupled in size thanks to strong organic growth and this series of tuck-in acquisitions. We are delighted to welcome Mubadala, QIA and our like-minded, long term investors in to this sector-leading business. #infrastructure #investment #trailer #leasing #supplychains #coinvest

Congratulations to Bruno Hayem and the team at Tepsa (fka Rubis Terminal) on their re-branding. This is an important milestone for the company as it evolves it’s offering to focus on the critical infrastructure that will ensure energy security and deliver the energy transition. #infrastructure #rebrand #bulk #liquid #storage #TEPSA

I Squared is and always has been an advocate for transformative approaches to infrastructure investment to promote sustainable economic growth. Nowhere is the need greater and, as an investor, the opportunity more interesting and appealing than in Asia Pacific. Coming on the back of a busy period in the region (see here: https://lnkd.in/gPPV6jjp), Harsh Agrawal, I Squared's Senior Partner, APAC, spoke with Infrastructure Investor about some of the firm's recent investments in the region and the power of the global I Squared portfolio company network.