Global asset managers, including KKR and I Squared Capital, are competing to acquire a district cooling business owned by Abu Dhabi’s Multiply Group, which is part of a massive $1.5 trillion empire controlled by one of the UAE’s most influential Sheikhs. District cooling plants, which provide chilled water through insulated pipes to cool buildings, offer an energy-efficient and environmentally friendly alternative to traditional air conditioning. The business being sold, PAL Cooling Holding (PCH), has attracted interest from a range of potential buyers, including Investcorp, the Middle East’s largest alternative investment manager.
Alongside KKR and I Squared Capital, other prominent firms, such as CVC, which is collaborating with Engie-backed National Central Cooling Co (Tabreed), are also bidding for the asset. The deal is expected to be valued at around $1 billion. Abu Dhabi-based energy and utilities company TAQA is also reportedly eyeing the acquisition. The bidding process is moving into its second round, with interested buyers expected to submit binding offers next month.
The involvement of such high-profile investment firms reflects a broader trend of asset managers increasingly focusing on investment opportunities within the Gulf region, as local governments shift toward diversifying their economies away from oil dependency. Historically, private equity firms raised funds in the Gulf to invest in other markets. However, with the region’s ambitious economic diversification initiatives, these firms are now looking at local assets as attractive investment opportunities.
KKR has recently announced plans to establish a team in the region to pursue deals in the Gulf, further highlighting the region’s growing appeal to global investors. Multiply Group, which owns the cooling business, is controlled by IHC (International Holding Company), led by Sheikh Tahnoon bin Zayed Al Nahyan, who is not only the UAE’s national security adviser but also the brother of the country’s president. His vast business empire spans multiple sectors, including two sovereign wealth funds.
This growing interest in local Gulf investments is part of a larger trend of private equity firms adjusting their strategies to capitalize on the region’s changing economic landscape. Despite a global downturn in private equity fundraising, with around $680 billion raised in 2024, a 30% decrease from the previous year, Gulf deals remain a key area of focus for major investors.
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