At I Squared, we use a robust framework to evaluate risk-adjusted returns for infrastructure assets.
This process seeks to leverage our team’s expertise to consistently assess investment attractiveness across sectors and geographies. Our approach supports building a globally diversified portfolio with low correlation, strong safety margins, and compelling risk-adjusted returns. Our risk assessment model, the Risk Wheel, serves three key purposes:
Evaluate Risk-Return Profiles
Assess the potential risk and return of every investment opportunity.
Track Performance
Provide measurable indicators to monitor the performance of investments over time.
Compare Relative Value
Analyze investments across sectors and regions to identify compelling opportunities.
Risk Wheel
The I Squared Risk Wheel evaluates ten critical risk factors shown below.
Each risk factor is scored out of 10 and given equal weighting such that when summed together, results in a risk score for the company out of 100. The higher the risk score, the higher the target gross IRR must be to justify the risk.
Growth
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Integer semper erat accumsan, tincidunt augue non, rhoncus augue.
Business cycle
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Integer semper erat accumsan, tincidunt augue non, rhoncus augue.
Leverage
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Integer semper erat accumsan, tincidunt augue non, rhoncus augue.
Governance
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Integer semper erat accumsan, tincidunt augue non, rhoncus augue.
Pricing
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Integer semper erat accumsan, tincidunt augue non, rhoncus augue.
Inflation
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Integer semper erat accumsan, tincidunt augue non, rhoncus augue.
Liquidity
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Integer semper erat accumsan, tincidunt augue non, rhoncus augue.
Barriers to Entry
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Integer semper erat accumsan, tincidunt augue non, rhoncus augue.
Regulation
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Integer semper erat accumsan, tincidunt augue non, rhoncus augue.
Operation
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Integer semper erat accumsan, tincidunt augue non, rhoncus augue.
Growth
Business cycle
Leverage
Governance
Pricing
Inflation
Liquidity
Barriers to Entry
Regulation
Operation
Lorem ipsum dolor amet
Growth
Business cycle
Leverage
Governance
Pricing
Inflation
Liquidity
Barriers to Entry
Regulation
Operation
12345678910
We use the ISQ Risk Wheel to regularly monitor the risk profiles of our assets, adjusting our strategies as necessary to mitigate any emerging risks.
Adjusting our strategies as necessary to mitigate any emerging risks. We use the ISQ Risk Wheel to regularly monitor the risk profiles of our assets,.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Integer semper erat accumsan, tincidunt augue non, rhoncus augue.
