The State Oil Fund of the Republic of Azerbaijan (SOFAZ) has invested in Inkia Energy, Peru's largest independent power producer, as part of a strategic partnership with I Squared Capital, a leading global infrastructure investment firm.
Operative Information Center-OMM reports that this investment in Inkia Energy represents the first joint venture undertaken by SOFAZ in the Latin American region alongside its partners.
In February 2026, the Canada Pension Plan Investment Board (CPPIB) acquired a 50 percent stake in Inkia Energy from I Squared Capital. The remaining 50 percent stake was acquired through an investment structure managed by I Squared Capital, in which SOFAZ also participated.
Inkia Energy maintains a diversified portfolio comprising hydroelectric, natural gas, solar, and wind energy assets. The company boasts a total effective generation capacity of 2.6 GW, accounting for approximately 22 percent of Peru's total electricity production. Furthermore, the company holds a development pipeline exceeding 4 GW, primarily focused on renewable energy projects, which it has identified as a strategic priority for long-term expansion.
As a leading player in Peru's energy sector, Inkia Energy demonstrates strong operational performance. This investment aligns with SOFAZ's long-term strategy to geographically diversify its portfolio into Latin America, strengthening its holdings in the power generation sector, which offers robust fundamentals and an attractive risk-return profile.
The growing interest from international institutional investors in Latin American infrastructure assets in recent years underscores the region's increasing significance in the global infrastructure investment landscape.
Established in 1999, SOFAZ is the sovereign wealth fund of Azerbaijan, responsible for the collection and efficient management of the country's oil and gas revenues. The Fund's primary objective is to manage these revenues sustainably to preserve and increase wealth for future generations. With assets currently exceeding 70 billion USD, SOFAZ implements a globally diversified investment strategy covering debt obligations, money market instruments, equities, gold, real estate, and infrastructure.
I Squared Capital is a leading independent global infrastructure investor focused on the mid-market segment, managing over 60 billion USD in assets. Founded in 2012, the firm operates a diverse portfolio spanning energy, utilities, transport, logistics, and digital, social, and environmental infrastructure. Its investments contribute to providing essential services to millions of people worldwide. Currently, I Squared Capital's portfolio includes over 100 companies operating in more than 70 countries, with its headquarters in Miami, USA, and offices in Abu Dhabi, London, Munich, New Delhi, São Paulo, Singapore, Sydney, and Taipei.
This entry into the Latin American market not only supports SOFAZ's geographic diversification strategy but also expands the Fund's presence in new markets with significant long-term investment potential and extensive infrastructure opportunities.
