Azerbaijan’s State Oil Fund (SOFAZ) has made its first investment in Latin America, acquiring an indirect stake in Peru’s largest independent electricity producer, Inkia Energy, as part of its strategy to diversify its global investment portfolio.
SOFAZ invested in Inkia Energy through a continuation vehicle managed by I Squared Capital, a leading global infrastructure investor.
The transaction marks SOFAZ's entry into Latin America's infrastructure market, broadening its exposure to the region's growing energy sector.
The investment follows a February 2026 transaction in which the Canada Pension Plan Investment Board (CPPIB) acquired a 50 per cent stake in Inkia Energy from I Squared Capital.
The remaining 50 per cent stake was acquired by an I Squared Capital-managed continuation vehicle, with SOFAZ participating as an underlying investor.
Inkia Energy operates a diversified portfolio of hydroelectric, natural gas, solar and wind power assets with an effective generation capacity of 2.6 gigawatts (GW).
The company produces around 22 per cent of Peru's electricity, making it one of the country's leading power producers.
Inkia also has a development pipeline exceeding 4 GW, with most projects focused on renewable energy, supporting its long-term expansion strategy.
SOFAZ said the investment aligns with its strategy of expanding its global infrastructure portfolio while strengthening geographic diversification through investments in resilient assets.
The fund said rising electricity demand, increasing infrastructure needs and the continued expansion of renewable energy across Latin America are creating new opportunities for international investors.
Established in 1999, the State Oil Fund of the Republic of Azerbaijan (SOFAZ) manages the country's oil and gas revenues, with a mandate to preserve and grow national wealth for future generations.
With nearly $70 billion in assets under management, SOFAZ follows a diversified investment strategy spanning fixed income, equities, gold, real estate and infrastructure.
I Squared Capital is an independent global infrastructure investor focused on mid-market opportunities, managing more than $60 billion in assets.
Founded in 2012, the firm invests across the power and utilities, transport and logistics, digital infrastructure, environmental infrastructure and social infrastructure sectors.
Its portfolio includes more than 100 companies operating in over 70 countries. The firm is headquartered in Miami and has offices in Abu Dhabi, London, Munich, New Delhi, São Paulo, Singapore, Sydney and Taipei.
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