The Public Investment Fund (PIF) and I Squared Capital, a global independent investment management firm specializing in infrastructure investments, announced on Monday the signing of a memorandum of understanding, through which I Squared will explore investment opportunities in real estate and essential infrastructure assets owned by the fund and its portfolio companies.

The two parties, in cooperation with the fund's portfolio companies, intend to study numerous opportunities available in the fields of digital infrastructure and district cooling systems, given their pivotal importance for the development and growth of the real estate sector. I Squared Capital aims to allocate investments of up to $1 billion (equivalent to SAR 3.75 billion) for each, with the possibility of expansion to include other related areas within the fund's portfolio.

Related news

The memorandum of understanding aligns with the strategic objectives of the Public Investment Fund's 2026–2030 strategy, which focuses on partnering with global investors in numerous opportunities within the fund's portfolio, and maximizing value for its companies. The partnership will help accelerate the completion and delivery of projects and continue to attract capital across various investment opportunities. Saad Al-Khroud, Head of Local Real Estate Investments at the Public Investment Fund, said: 'The Public Investment Fund has an extensive portfolio of unprecedented real estate and infrastructure projects in the modern era, which helps attract major global investors, maximize value, and achieve sustainable returns. The memorandum of understanding combines the fund's expertise and distinctive investment ecosystem with I Squared Capital's capabilities and long experience in the infrastructure sector.'

For his part, Sadek Wahba, Chairman of the Board and Managing Partner of I Squared Capital, said: 'The memorandum of understanding reflects the mutual trust between I Squared Capital and the Public Investment Fund, and supports our transition to a stage of actual contribution to the development and growth of infrastructure, contributing to the success journey of the Kingdom and the fund in this field, which is one of the most successful experiences globally.'

I Squared Capital has globally leading expertise in managing infrastructure investments, and its investments include many sectors, including energy infrastructure, utilities, transportation and logistics, and digital, social, and environmental infrastructure.

The Public Investment Fund is one of the most influential global investors and operates within a long-term strategy aimed at leading the economic transformation in the Kingdom and achieving sustainable returns.

It is worth noting that potential deals resulting from the non-binding memorandum of understanding announced today will be subject to meeting a set of requirements, including studying the opportunities by the parties and obtaining necessary regulatory approvals.