Two GCC SWFs and Others Invest Over $600 Million in I Squared Capital

Two sovereign wealth funds – Mubadala from Abu Dhabi and Qatar Investment Authority from Qatar, and others will be investing over $600 million in I Squared Capital, a leading independent global infrastructure investment manager based in Miami in the US, for Transportation Equipment Network (TEN).

Trailers play a critical role in complex supply chain networks by meeting customers’ needs for operational and contractual flexibility. TEN is North America’s second largest full-service trailer lessors with a combined fleet of over 83,000 trailers with locations across most major logistics hubs.

TEN recently completed a transaction to combine its operations with those of TIP Canada, the North American operations of TIP Group. I Squared acquired TIP Group in August 2018, and has tripled its EBITDA in that time via a combination of organic growth and bolt-on acquisitions.

Rebranded “TEN” earlier this year, I Squared’s build out of this trailer-leasing platform began in March 2021 with the acquisition of Star Leasing and subsequent acquisitions of Cooling Concepts in May 2022, North East Trailer Services (NETS) in July 2023 and Commercial Trailer Leasing (CTL) in September 2023.

The combined group provides services including integrated leasing, maintenance, advanced technological solutions, consultation services and innovative fleet electrification offerings across numerous industry verticals.

In building the TEN platform, I Squared has improved purchasing power and clarified strategic objectives for the firm. Since the platform build out started, TEN has now more than quadrupled in size thanks to strong organic growth and this series of tuck-in acquisitions.

Huge Potential

Gautam Bhandari, Chief Investment Officer and Managing Partner, I Squared, said that all of their co-investors represented like-minded, long-term capital that recognised the potential of the sector and will support the ambitions of TEN. This transaction is a win for TEN, for I Squared’s investors and for its global transportation franchise.

Giovanni Oddo, Head of Americas – Traditional Infrastructure at Mubadala, said that Mubadala’s investment in TEN reflects our commitment to critical assets that drive economic growth and offer long-term value.

“The trailer leasing market shows great potential with its rapid demand growth and strong market fundamentals. We are proud to partner with I Squared Capital and other leading investors to further enable the growth of TEN’s capabilities and market reach, creating one of the largest trailer leasing platforms in North America,” he added.

Mohammed Al-Sowaidi, Chief Investment Officer for Americas at QIA, said that this investment was part of QIA’s strategy to invest in, and partner with, the leading companies in critical sectors such as supply chain networks, logistics and warehouses globally.

I Squared has over $39 billion in assets under management and known for the development of investment platforms in infrastructure projects.

Headquartered in Miami with offices in Abu Dhabi, London, Munich, New Delhi, São Paulo, Singapore, Sydney and Taipei, I Sqauared operates a diverse portfolio of 83 companies in 71 countries in a variety of sectors including utilities, energy, digital infrastructure, transport, environmental infrastructure, and social infrastructure.