Baku: The State Oil Fund of the Republic of Azerbaijan (SOFAZ) has initiated an investment in Inkia Energy, recognized as Peru's largest independent power producer, in collaboration with I Squared Capital, a prominent global infrastructure investor.

According to Azerbaijan State News Agency, in February 2026, the Canada Pension Plan Investments Board (CPPIB) acquired a 50% stake in Inkia Energy from I Squared Capital, while the remaining 50% stake was secured by a continuation vehicle managed by I Squared. SOFAZ has committed to this continuation vehicle as an underlying investor, marking its strategic entry into the Latin American energy market.

Inkia Energy maintains a diverse portfolio encompassing hydroelectric, gas, solar, and wind assets, boasting an effective capacity of 2.6 GW and holding a 22% share in Peru's electricity generation market. The company is also advancing a development pipeline exceeding 4 GW, predominantly focused on renewable energy projects, reinforcing its dedication to long-term sectoral growth.

The investment by SOFAZ aligns with its overarching strategy to broaden geographic diversification by investing in resilient assets like power generation. This sector is noted for its robust fundamentals and favorable risk-return profile, offering SOFAZ an opportunity to bolster its presence in Latin America.

Established in 1999, SOFAZ is tasked with managing Azerbaijan's oil and gas revenues, with a focus on preserving and augmenting wealth for future generations. With nearly USD 70 billion in assets under management, the fund's investment strategy spans global opportunities across a spectrum of sectors, including fixed income, equities, gold, real estate, and infrastructure.

I Squared Capital, founded in 2012, is a leading independent global infrastructure investor specializing in mid-market investments, managing over $60 billion in assets. The firm has a diverse portfolio across power and utilities, transportation and logistics, digital infrastructure, environmental infrastructure, and social infrastructure, serving millions globally. With its headquarters in Miami, I Squared maintains offices in multiple cities, including Abu Dhabi, London, and So Paulo.