The Arab Energy Fund and The State Oil Fund of the Republic of Azerbaijan (SOFAZ) have agreed to partner with CVC DIF to invest in a co-investment vehicle that invests alongside DIF VII, which recently acquired a 50 per cent stake in PAL Cooling Holding (PAL), a principal district cooling operator in UAE.
In June 2025, CVC DIF, the infrastructure
strategy of leading global private markets manager CVC, and Tabreed, one of the
world’s leading district cooling companies, agreed on the acquisition of PAL in
a 50/50 joint venture with an equity value of approximately AED 3.8 billion.
Khalid Al-Ruwaigh,
Chief Executive Officer, The Arab Energy Fund, said: “We are proud to partner
with CVC and the State Oil Fund of the Republic of Azerbaijan on this landmark
investment in PAL. District cooling plays a vital role in achieving greater
energy efficiency, and we are supporting a group that exemplifies operational
excellence. This collaboration reflects The Arab Energy Fund’s focus on
high-quality platforms and partnerships that deliver long-term value and
impact.”
SOFAZ Deputy CEO Rovshan Javadov stated: “SOFAZ’s
participation in this transaction underscores our strong interest in the UAE
and broadly in the Gulf region. District cooling is a vital component of
energy-efficient urban development, and this transaction supports our objective
to deepen cross-border economic cooperation and build strategic partnerships.
We are pleased to expand our investment presence in Abu Dhabi alongside
reputable partners in a consortium contributing to the region’s broader
sustainability goals.”
Allard Ruijs, Partner
and CIO at CVC DIF, said: “We very much appreciate the partnership with SOFAZ
and The Arab Energy Fund, which fully aligns with CVC’s commitment to the
region and investment in the UAE, where we look to back businesses that support
development across the country. PAL Cooling is a high-quality investment that
will provide all our investors with solid returns, while offering the potential
for long-term growth and sustainable value creation.” -TradeArabia News Service
