New Delhi, June 17 -- Infrastructure-focused private equity firm I Squared Capital and the US International Development Finance Corporation (DFC) plan to establish a $3 billion investment platform to develop energy infrastructure across South and Southeast Asia, according to a joint announcement.

I Squared-managed funds will commit $1.5 billion, matched by an equal amount from DFC, in what the agency described as its largest single project investment to date. The platform, known as the ISQ Asia Energy Infrastructure Investment Platform, will target LNG and other petroleum products import, storage, and transportation infrastructure in countries including India, Indonesia, Malaysia, the Philippines, and Vietnam.

The development comes weeks after I Squared unveiled a $1 billion power transmission platform for India, a development which was first reported by VCCircle. The PE firm is also separately raising a $3-billion fund for emerging growth markets including India.

The new initiative comes as rapid economic growth and urbanization drive rising power demand across the region, where infrastructure gaps have led to energy shortages and price volatility. It seeks to bolster energy security for US allies while facilitating greater access to US LNG and related exports.

The partnership builds on an existing relationship between the two. Since 2016, DFC has committed about $500 million alongside $1.5 billion from I Squared-managed funds in prior vehicles, mobilizing roughly $2 billion for infrastructure in South and Southeast Asia and Latin America.

I Squared, founded in 2012 and headquartered in Miami, manages around $60 billion in assets with investments spanning energy, utilities, transport, digital infrastructure, and other sectors across more than 70 countries. The firm has been active in Asia since 2014, deploying over $9 billion in the region.

The latest move aligns with broader US efforts to strengthen supply chain resilience and economic ties in the Indo-Pacific amid growing regional energy needs and a shift away from coal in some markets.

I Squared has been expanding its infrastructure activities, including recent fundraising progress toward a $15 billion target for its flagship fund and other platform investments in areas such as renewables and data centers.

Published by HT Digital Content Services with permission from VC Circle.