PIF, I Squared Capital Sign MoU for up to $2Bn Infrastructure Investment

RIYADH: Saudi Arabia’s Public Investment Fund has secured up to $2 billion from global investor I Squared Capital for its real estate and infrastructure portfolio.

Under the agreement announced in Riyadh, I Squared will target allocating up to $1 billion each toward digital infrastructure and district cooling projects, both seen as critical enablers of the real estate sector, with room to scale into related business areas.

As one of the world’s largest sovereign wealth funds, PIF plays a central role in Saudi Arabia’s Vision 2030 transformation. 

The fund has increasingly turned to international co-investors to help fund its expanding portfolio of real estate and infrastructure developments, a key priority under its 2026-2030 strategy.

According to a press release, Saad Al-Kroud, head of local real estate investments at PIF, said the fund presents “an unprecedented pipeline of real estate and infrastructure projects in the modern world” that continue to draw leading investors and generate strong returns.

“This MoU brings together PIF’s capabilities, scale and ecosystems, alongside I Squared’s operational expertise and proven record in the infrastructure sector,” he added.

PIF contributes to global expertise

Sadek Wahba, chairman and managing partner of I Squared Capital, described the deal as a deepening of trust between the two institutions, saying the firm is moving “from partnership to action” based on shared confidence in the strength of Saudi Arabia’s infrastructure story.

“We look forward to contributing our global expertise alongside PIF in the Kingdom,” he added.

The MoU is expected to accelerate project delivery across PIF’s portfolio companies and increase the share of third-party capital flowing into its opportunities. Any resulting transactions remain subject to further assessment and regulatory approval, as the MoU itself is non-binding.

I Squared Capital is an independent global infrastructure investor focused on the mid-market, managing $60 billion in assets since its founding in 2012.

Its portfolio spans power and utilities, transportation and logistics, and digital infrastructure, as well as environmental and social infrastructure, with more than 100 companies operating in over 70 countries.

The firm is headquartered in Miami, with additional offices in Abu Dhabi, London, and Singapore.