I Squared Capital to Acquire Milestone Environmental
Global infrastructure investment manager I Squared Capital has agreed to acquire Milestone Environmental Services, a leading independent environmental infrastructure company, from private equity firm SK Capital Partners.
Headquartered in Houston, Milestone owns and operates 15 fully permitted disposal facilities for oil and gas drilling, completion, and production waste. Its assets are strategically positioned across major U.S. energy basins, including the Permian’s Delaware and Midland sub-basins, the Eagle Ford, and the Haynesville.
Leveraging this footprint, Milestone has recently expanded into industrial waste management, utilizing its geological and regulatory expertise to handle a broader range of hazardous and non-hazardous industrial waste streams.
“Energy waste management is an essential but often underappreciated part of the energy value chain, providing the critical environmental infrastructure that enables safe and responsible oil and gas production,” Gautam Bhandari, managing partner and chief investment officer at I Squared Capital, said in a statement.
The acquisition marks I Squared’s third major U.S. infrastructure transaction in recent months. In May, the firm agreed to acquire 10 data center facilities from Cogent Communications Holdings for $225 million in cash to launch a domestic data center platform, following its April acquisition of Elea Data Centers in Brazil.
“We have spent 12 years building and operating critical environmental infrastructure serving important oil and gas basins in the United States,” Gabriel Rio, founder, president, and chief executive officer at Milestone, added. “We look forward to delivering the safe, reliable, and innovative waste management solutions that our customers depend on every day.”
The transaction, executed through I Squared’s flagship infrastructure fund, is expected to close in the fourth quarter of 2026. Financial terms of the deal were not disclosed.
Founded in 2012, Miami-headquartered I Square manages over $60 billion in assets.
Houlihan Lokey is serving as financial advisor and Latham & Watkins LLP is serving as legal counsel to Milestone and SK Capital Partners. Simpson Thacher & Bartlett LLP is serving as legal counsel to I Squared Capital.