Mubadala, QIA Lead $600 Million Investment in Trailer Lessor TEN - Bloomberg

Mubadala, QIA Lead $600 Million Investment in Trailer Lessor TEN - Bloomberg

Private equity firm I Squared Capital has raised more than $600 million from investors including Mubadala Investment Co. and Qatar Investment Authority for Transportation Equipment Network, the largest full-service trailer lessor in the US.

The fundraising comes after I Squared earlier this year grouped several trailer-leasing companies it acquired under a single brand name. The proceeds will be used to support TEN’s acquisitions including the purchase of TIP Canada, according to a statement reviewed by Bloomberg News.

Sovereign wealth funds like Mubadala and QIA have been boosting their infrastructure investments globally as they seek to generate steady long-term returns. They’re increasingly becoming go-to sources of capital for private equity firms at a time when other players are shying away from pursuing big-ticket deals.

TEN operates more than 83,000 trailers and locations across the US and Canada. It provides full-service support from leasing and maintenance to consultation services. I Squared, which manages about $40 billion in assets, separately owns European-focused trailer lessor TIP.

Mubadala sees the US as a top investment destination with about $100 billion invested in the country, Waleed Al Muhairi, its deputy group chief executive officer, said in an interview in December, despite increasing scrutiny on Middle Eastern investments by the Biden administration. For Qatar Investment Authority, its high-profile investments in the US include taking a 5% stake in the parent company of NBA team Washington Wizards.