BAKU, Azerbaijan, January 28. The State Oil
Fund of the Republic of Azerbaijan (SOFAZ) and the Arab Energy Fund
(TAEF) have partnered with CVC DIF (formerly DIF Capital Partners)
to invest in PAL Cooling Holding (PAL) through a joint investment
structure created to secure a 50% stake in the company, Trend reports, citing the
Fund.
According to the Fund, this collaboration reflects a shared
strategic approach aimed at developing regional infrastructure
projects that enhance energy efficiency.
In June 2025, leading global private market investment manager
CVC, together with Tabreed, one of the world’s leading centralized
cooling companies, agreed on the acquisition of PAL Cooling Holding
LLC. Through the joint venture formed by CVC DIF and Tabreed, PAL
was acquired with a 50/50 ownership split, with the deal’s capital
valued at approximately 3.8 billion UAE dirhams.
PAL Cooling Holding is the second-largest centralized cooling
operator in the UAE, operating under eight long-term concession
agreements averaging 25 years and serving over 45,000 clients. The
company plays a key role in building reliable, efficient, and
sustainable cooling infrastructure in the country’s main
development zones.
The partnership between TAEF and SOFAZ with CVC DIF unites three
institutional investors on a single platform, leveraging capital
and sector expertise to strengthen PAL’s operational resilience and
support the implementation of its long-term development strategy.
Tabreed retains a 50% stake in the joint venture, contributing its
extensive experience in centralized cooling across six countries
and managing 99 facilities.
“We are pleased to partner with CVC and the State Oil Fund of
Azerbaijan on this significant investment in PAL. Centralized
cooling plays a crucial role in energy efficiency, and we are
supporting a platform with high operational performance. This
partnership reflects TAEF’s strategic approach of targeting
long-term, impactful investment platforms and collaborations,” TAEF
CEO Khalid Ali Al-Ruwaigh said.
To this account, SOFAZ’s strategic dedication to the UAE and the
wider Gulf area received significant recognition.
“Our involvement in this landmark project underscores SOFAZ’s
strategic commitment to the UAE and the broader Gulf region.
District cooling is a cornerstone of energy-efficient, modern urban
development, and this investment advances our goals of
strengthening cross-border economic cooperation and forging
strategic partnerships. We are proud to expand our presence in Abu
Dhabi alongside trusted partners, contributing through this
consortium to the region’s broader sustainability and long-term
development objectives,” SOFAZ Deputy Executive Director Rovshan
Javadov highlighted.
In this context, it's also significant to underscore SOCAR and
The Arab Energy Fund (TAEF).
“We are thrilled to partner with SOCAR and TAEF in this venture.
This collaboration perfectly reflects CVC’s long-term commitment to
the region, especially the UAE, and aligns with our strategy to
invest in businesses that drive national development. PAL Cooling
represents a high-quality investment with strong potential for
sustainable growth and long-term value creation, while delivering
reliable returns for all our investors,” CVC DIF Investment
Director and Partner Alvaro Ruiz Nolasco said.
About the Arab Energy Fund
TAEF is a multilateral financial institution dedicated to the
energy and utilities sectors across the Middle East and North
Africa (MENA) region. Established in 1974 at the initiative of ten
oil-exporting Arab countries, TAEF provides financing through
credit and equity instruments to drive the development of the
region’s energy sector. Its work focuses on strengthening energy
security, promoting sustainable energy solutions, and expanding
local value chains and services across MENA. The Fund partners with
leading public and private sector institutions in more than 35
markets, offering comprehensive financial solutions that cover all
stages of the energy value chain. Guided by environmental, social
responsibility, and corporate governance (ESG) principles, TAEF
dedicates roughly 20% of its $5.8 billion loan portfolio to
environmental and social projects. It is the only financial
institution in MENA with an exclusive focus on energy and holds
strong international credit ratings of "Aa2" from Moody’s, "AA+"
from Fitch, and "AA-" from S&P.
About SOFAZ
Established in 1999, the State Oil Fund of Azerbaijan (SOFAZ) is
a sovereign wealth fund responsible for collecting and efficiently
managing the country’s oil and gas revenues. Its primary mission is
to safeguard and grow these revenues for future generations through
long-term, sustainable management. Today, SOFAZ manages total
assets exceeding $70 billion and implements a globally diversified
investment strategy spanning debt and money market instruments,
equities, gold, real estate, and infrastructure.
About CVC DIF
CVC DIF is a leading global private equity fund manager
specializing in the middle-market infrastructure segment. Founded
in 2005 and headquartered in Amsterdam, the Netherlands, CVC DIF
currently oversees approximately €19 billion in infrastructure
assets across energy transition, transportation, utilities, and
digitalization sectors. With over 250 employees operating from 12
offices worldwide, the firm combines global reach with strong local
networks and sector-specific expertise. CVC DIF forms part of CVC’s
broader infrastructure strategy, benefiting from the firm’s
extensive global platform of 30 offices across six continents,
enabling access to unique investment opportunities and long-term
growth potential.
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