I Squared Capital Sells Energuate, a Subsidiary of Inkia Energy, in Guatemala
I Squared Capital, a leading global infrastructure investment manager, announced today that it has divested Energuate, its electricity distribution asset in Guatemala and a subsidiary of Inkia Energy, a leading power platform across Latin America, to Threelands Energy Ltd.
Energuate is the largest privately-owned electricity distribution company in Central America, serving nearly 12 million beneficial users across over 100,000 square kilometers. The company plays an integral role in supporting the Government of Guatemala's Rural Electrification Program, which focuses on last-mile electrification of under-resourced communities in rural areas of the country. The company is also engaged in the development of Guatemala's transmission system through a comprehensive investment plan carried by its electricity transmission subsidiary.
Under I Squared's ownership, the company's customer base increased from 1.7 million to 2.3 million complemented with significant growth in per capita consumption, and executed a robust operational improvement plan, including a reduction in electricity losses, enhancement of collection initiatives and other network efficiencies. The company's performance also improved markedly across several quality-of-service metrics, including increased customer satisfaction rates.
"We are pleased to have supported Energuate's growth into a more efficient enterprise," said Gautam Bhandari, Managing Partner and Chief Investment Officer of I Squared Capital. "In partnership with Inkia Energy, we executed a value creation strategy informed by the expertise and experience from across our power portfolio, which drove significant growth across the business. We are confident that Energuate is well-positioned for continued growth."
Financial terms of the transaction were not disclosed. Gibson, Dunn & Crutcher LLP served as legal advisor and Citigroup Global Markets Inc. as financial advisor to Inkia Energy and I Squared Capital. Threelands Energy Ltd was represented by Skadden, Arps, Slate, Meagher & Flom LLP as lead legal advisor and Inverlink as financial advisor.
About I Squared Capital
I Squared Capital is an independent global infrastructure manager with over $37 billion in assets under management focused on investing in North America, Europe, Asia, and Latin America. Headquartered in Miami, the firm has more than 215 professionals across its offices in Hong Kong, London, New Delhi, Singapore, Taipei, and Sydney. I Squared Capital has invested in a diverse portfolio of 72 companies in 59 countries with over 27,000 employees across the utilities, energy, digital infrastructure, transport, environmental infrastructure, and social infrastructure sectors providing essential services to millions of people around the world.
About Inkia Energy
Nautilus Energy Holdings and Partners LLC (commercially known as Inkia Energy) is an international company focused on the electric power sector, specifically on generation and distribution. Inkia is based in Latin America with operations in Argentina, Peru, Chile, Bolivia and Guatemala, totaling more than 3.4 gigawatts of installed capacity and more than 2.3 million clients served through its distribution business. Inkia focuses on Latin American markets that have higher rates of growth of gross domestic product, as well as lower base levels of overall and per capita energy consumption compared to developed markets.
No discussion with respect to specific companies should be considered a recommendation to purchase or sell any particular investment. The companies discussed do not represent all past investments. It should not be assumed that any of the investments discussed were or will be profitable, or that recommendations or decisions made in the future will be profitable.
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