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.”

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