Mubadala, QIA Spearhead $600 Million Investment In US Trailer Lessor TEN

The UAE's Mubadala Investment Company, Qatar Investment Authority (QIA), and other co-investors have raised over $600 million to support the growth of Transportation Equipment Network (TEN). The funds will be used for acquisitions including NETS, CTL, and TIP Canada. This investment highlights I Squared Capital's capability to expand and scale platforms effectively.

Trailers are essential in supply chain networks, providing operational and contractual flexibility. TEN is North America's second-largest full-service trailer lessor with a fleet exceeding 83,000 trailers across major logistics hubs.

Giovanni Oddo, Head of Americas – Traditional Infrastructure at Mubadala, stated: "Mubadala's investment in TEN reflects our commitment to critical assets that drive economic growth and offer long-term value. The trailer leasing market shows great potential with its rapid demand growth and strong market fundamentals. We are proud to partner with I Squared Capital and other leading investors to further enable the growth of TEN's capabilities and market reach, creating one of the largest trailer leasing platforms in North America."

The recent transaction saw TEN merging its operations with TIP Canada, part of TIP Group's North American operations. I Squared acquired TIP Group in August 2018 and has since tripled its EBITDA through organic growth and acquisitions.

Gautam Bhandari, Chief Investment Officer and Managing Partner at I Squared, expressed enthusiasm about the new partnerships: "We are delighted to welcome Mubadala, QIA, and other co-investors in TEN. All of our co-investors represent like-minded, long-term capital that recognize the potential of the sector and will support the ambitions of TEN. This transaction is a win for TEN, for our investors and for I Squared's global transportation franchise."

I Squared began building out the TEN platform in March 2021 by acquiring Star Leasing. Subsequent acquisitions included Cooling Concepts in May 2022, North East Trailer Services (NETS) in July 2023, and Commercial Trailer Leasing (CTL) in September 2023. These acquisitions have enabled TEN to offer integrated leasing, maintenance services, advanced technological solutions, consultation services, and innovative fleet electrification options across various industry sectors.

Mohammed Al-Sowaidi, Chief Investment Officer for Americas at QIA, remarked: "This investment is part of QIA's strategy to invest in, and partner with, the leading companies in critical sectors such as supply chain networks, logistics and warehouses globally."

The rebranding of this trailer-leasing platform as "TEN" occurred earlier this year. Since then, it has more than quadrupled in size due to strong organic growth combined with tuck-in acquisitions.

I Squared Capital has enhanced purchasing power while clarifying strategic goals through these efforts. The creation of a North American leader in flexible last-mile transportation solutions underscores their ability to build scalable platforms.