KKR and I Squared Capital are among several private investment firms competing to acquire PAL Cooling Holding (PCH), a district cooling business owned by Abu Dhabi’s Multiply Group, according to a report by Reuters citing sources familiar with the matter.
The process, which could value the company at approximately $1bn, has also attracted interest from other major players including Investcorp, the Bahrain-based alternative investment firm, and CVC Capital Partners, which is bidding in partnership with Engie-backed Tabreed (National Central Cooling Company).
Abu Dhabi’s state-backed utility TAQA is also said to be considering an offer, with binding bids expected in the next phase of the sale process, likely taking place in the coming weeks.
PAL Cooling operates district cooling infrastructure – energy-efficient plants that distribute chilled water through insulated pipelines to cool residential, commercial, and industrial buildings. The sector is increasingly viewed as a sustainable alternative to traditional air conditioning, especially in high-temperature regions like the Middle East.
The strong interest in PAL Cooling underscores a broader shift in private equity focus toward domestic investment opportunities across the Gulf, as governments roll out diversification strategies to reduce reliance on hydrocarbons. Historically, global private equity firms have raised capital in the region to deploy elsewhere.
KKR recently announced plans to expand its team in the Gulf, following a growing number of global firms building on-the-ground capabilities to source deals in the region.
Multiply Group, which owns PAL Cooling, is a subsidiary of International Holding Company (IHC), chaired by Sheikh Tahnoon bin Zayed Al Nahyan—brother of the UAE president and a central figure in the country’s economic diversification efforts. IHC has rapidly grown into one of the UAE’s largest and most influential investment vehicles, spanning multiple sectors and controlling two sovereign wealth funds.
