Abu Dhabi’s Mubadala and KKR Acquire Canada’s Coolit Systems as Part of a $1bn Long-term Capital “strategic Partnership”

Mubadala Investment Company and funds managed by private equity firm KKR have jointly acquired Canada-based CoolIT Systems as Abu Dhabi’s sovereign wealth fund continues to expand its technology investment portfolio.

The acquisition, first announced in May, is part of Mubadala’s impact investing commitment, the sovereign fund said on Wednesday.

Based in Calgary, CoolIT specialises in scalable liquid cooling solutions for the demanding computing environment. It has operations across North America, China and Taiwan.

Get the week’s top news delivered directly to your inbox – Sign up for our newsletter

The fund’s impact investing strategy aligns with the objectives set out in the UN’s Sustainable Development Goals.

KKR invested in CoolIT as part of its Global Impact strategy, which is focused on identifying and investing in opportunities where “financial performance and societal impact are intrinsically aligned”, Mubadala said.

Mubadala, which invests on behalf of the Abu Dhabi government, is at the heart of the emirate’s efforts to diversify its revenue base and generate income from sources other than oil.

Its investment portfolio spans six continents, with interests in several sectors and asset classes, including aerospace, information and communications technology, semiconductors, metals and mining, oil and gas, renewable energy and petrochemicals.

The sovereign fund, which manages more than $276 billion in assets globally, last year joined hands with KKR to invest across performing private credit opportunities in the Asia-Pacific region.

As part of the “strategic partnership”, Mubadala and KKR will invest at least $1 billion in long-term capital, providing credit solutions to companies and sponsors, the two companies said in October last year.

Mubadala will also use its capital alongside KKR’s existing pools of funds, including the $1.1 billion KKR Asia Credit Opportunities Fund, which focuses on viable privately originated credit investments in the region, the companies said at the time.

Source: The National News

Can’t stop reading? Read more