By Hadeel Al Sayegh and Federico Maccioni
Dubai, Reuters (Reuters) – Dubai and My Square Capital is one of the global asset managers of the regional cooling business owned by Abu Dhabi Multigroup, part of a $1.5 trillion empire overseen by one of the UAE’s most powerful chiefs, three sources said.
Regional cooling plants for industrial and residential buildings have been developed as a more economical and environmentally friendly alternative to air conditioning through insulated piping.
Investcorp, the Middle East’s largest alternative investment manager, is one of the potential suitors for PAL Cooling Holdings (PCH), and the three knowledge about the matter told Reuters that the details were not disclosed.
The People said the asset manager participated in a competition that included CVC in partnership with Engie-backed National Central Cooling Corporation, a deal that could be worth about $1 billion.
Abu Dhabi Energy and utility TAQA are also watching the deal, which is approaching a second round, with potential buyers expected to file binding bids next month, they said.
KKR, Investcorp and Taqa declined to comment, and multiplied by my square capital, CVC and Tabreed did not comment immediately.
Reuters reported last month that Tabride is working with Citi for potential bids.
Interest in PCH highlights how the acquisition group now uses local investment opportunities in the Gulf region as an ambitious plan for the region’s government to diversify its economy from oil. Previously, stock companies would raise funds there to invest elsewhere.
Last week, KKR became the latest asset manager, announcing plans to build a team in the region to follow the Gulf deal.
The multiples are controlled by the IHC, which is chaired by the UAE National Security Advisor and brother of the country’s president, Sheikh Tahnoon Bin Zayed Al Nahyan, who controls a massive business empire including two sovereign wealth funds.
Global private equity funds received about $680 billion in revenue in 2024, a 30% decrease from the approximately $966 billion raised in 2023, S&P Global Market Intelligence data said in January.
(Reported by Hadeel Al Sayegh and Federico Maccioni; Edited by Emelia Sithole-Matarise)
