DFC, I Squared to Form $3B Platform to Expand US Energy Reach in Asia

I Squared Capital and the United States government's International Development Finance Corp (DFC) have agreed to form a $3-billion investment platform to help build energy infrastructure in South and Southeast Asia.

The platform "will help strengthen energy connectivity between the United States and the Indo-Pacific region, including expanded access to U.S. LNG and related energy exports", a joint statement said.

Miami, Florida-based I Squared will contribute $1.5 billion. The other half will come from DFC. "The platform represents DFC's largest single investment in a project to date and reflects a shared commitment to mobilizing long-term private capital to address the region’s growing energy infrastructure needs", the statement said.

"Rapid economic growth, urbanization and rising power demand across South and Southeast Asia are driving significant investment needs in energy infrastructure", the partners said. "Many countries in the region face infrastructure gaps that contribute to energy shortages, price volatility and constraints on industrial growth.

"By expanding critical LNG and other petroleum products import, storage and transportation infrastructure, this new platform will seek to address these bottlenecks and support more secure, reliable and affordable energy systems across the Indo-Pacific".

DFC head of investments Conor Coleman said, "This deal marks a historic step forward in DFC's strategy to deliver high-impact infrastructure that strengthens America’s partners and advances U.S. and Allied Partners' economic interests".

The transaction needs customary approvals and other closing conditions.

I Squared has already deployed over $9 billion in capital in the energy, transport and digital sectors across 24 markets in Asia since entering the region in 2014, the statement noted.

Last year it launched a "dedicated regional investment platform" for the Middle East and said it would open an office in Riyadh.

"The Riyadh office will focus on opportunities in energy transition, digital innovation, infrastructure development, and the development of capital markets - key pillars of the Kingdom's [Saudi Arabia] transformation agenda", I Squared said in a media release April 29, 2025.

I Squared senior partner Harsh Agrawal said, "Whether it's scaling clean energy platforms, deploying digital infrastructure, or modernizing logistics, we believe our hands-on, tech-driven approach aligns perfectly with the region’s ambitions".

I Squared also signed a memorandum of understanding (MoU) with Saudi Arabia's Public Investment Fund (PIF). "[T]he partnership with PIF aims to support the nation’s ongoing infrastructure initiatives. This collaboration will provide enhanced operational leverage, control, and transparency for these projects, while also creating opportunities for like-minded private capital partners from around the world to invest in Saudi Arabia", I Squared said in a news release May 14, 2025.

Another MoU executed between I Squared and The Arab Energy Fund would launch a collaboration on expanding energy infrastructure in the Middle East and North Africa "and supporting regional decarbonization efforts", as announced by I Squared May 15, 2025.

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