Announced last month, KKR’s $4.75 billion sale of its data center liquid-cooling business, CoolIT Systems, to Ecolab will return roughly 15x its investment and is another big win for the firm and its employee-ownership initiatives.

KKR acquired a majority stake in the Calgary-based company in 2023 at a valuation of around $270 million, with Mubadala Investment Company also participating.

If data centers are the 'picks and shovels' play for the AI boom, then CoolIT's data center cooling business is ‘picks and shovels-squared’. The company's systems tackle one of the biggest problems with heavy AI workloads: heat generation.

“We acted early on the conviction that rapid growth in computing demand would pose a significant challenge for data center efficiency, as traditional air-cooled systems can be incredibly energy- and water-intensive,” said Kyle Matter, managing director and head of North America Global Impact at KKR.

For context, KKR estimates that electricity demand from data centers could rise at a 13–15 percent CAGR and consume as much as 21 percent of global electricity by 2030, with thermal management accounting for more than 40 percent of data-center energy use.

With technology like CoolIT's offerings, liquid-cooled data centers use 30–40 percent less energy for cooling than traditional air-cooled facilities and also reduce water use through a closed-loop system.

Founded in 2001, CoolIT got its start producing liquid cooling systems for gaming computers before moving into server and data-center applications. The company now services more than 300 data centers globally.

From KKR's hold through the end of 2026, CoolIT is expected to deliver around 4x revenue growth (reaching $550 million of NTM sales) and more than 10x EBITDA growth.

Most of the story behind this investment is clearly market-driven growth (and the opportunity identification to take advantage of it). But KKR also put in work to ensure CoolIT was ready to service that demand.

Post-acquisition, KKR revamped the company's management team to bring in capabilities aligned with its stage and trajectory. Most of those key hires were sourced through referrals from the firm's industrials team, which tapped its network to find the right talent.

That team delivered against the operational demands required by such intense growth: since 2023, the firm said, CoolIT has doubled its workforce, added more than 300 jobs, expanded its manufacturing footprint to more than 300,000 square feet, and increased coolant distribution unit capacity by 25x.

Wrapping up the impressive performance was an enviable exit multiple. Ecolab said it's paying around 29x NTM adjusted EBITDA and 24x 2027 adjusted EBITDA.

Based on the provided purchase price and revenue growth, it's possible to back into an approximate KKR entry revenue multiple of around 2x. With EcoLab's purchase coming in at roughly 9x NTM revenue, KKR is enjoying some incredible multiple expansion.

After seeing off competition from sponsors who couldn't match such a lofty valuation, Ecolab plans to slot CoolIT into its Global Water segment and expects meaningful uplift from cross-sell — the combined business can sell coolant distribution units, cold plates, liquid loops, and rack manifolds into its existing customer base (doubling the company's Global High-Tech segment market opportunity from $5 billion to $10 billion) and opens up CoolIT's book of established relationships with hyperscaler and colocation clients.

The biggest win from the deal may belong to CoolIT employees, who stand to share in the windfall through equity received under KKR's broad-based employee ownership program. KKR said the 650 employees will receive cash payouts ranging from about 1 year of annual pay to more than 8 years, averaging around $240,000.

The transaction is expected to close in the third quarter of 2026, subject to regulatory approvals.

• Pershing Square Capital Management submitted a non-binding proposal to acquire Universal Music Group (Euronext: UMG), the world's largest record label at a valuation of around €55.8 billion.

• Madison Air Solutions, a ventilation and filtration systems provider, set terms for its NYSE IPO at $25–$27 per share, targeting up to $2.23 billion at a valuation of up to $13.2 billion, in what would be the largest U.S. industrial IPO in nearly three decades.

• EQT is among suitors eyeing a bid for AA, the UK's roadside recovery business being sold by TowerBrook Capital Partners, Warburg Pincus, and Stonepeak in a deal valued at around £5 billion, per the Financial Times.

• Gilead Sciences (Nasdaq: GILD) agreed to acquire Tubulis, a German clinical-stage biotech developing next-generation antibody-drug conjugates, for $3.15 billion upfront and up to $1.85 billion in milestone payments.

• Neurocrine Biosciences (Nasdaq: NBIX) agreed to acquire Soleno Therapeutics (Nasdaq: SLNO), which markets the first approved treatment for Prader-Willi syndrome, for $2.9 billion.

• TotalEnergies (Paris: TTE) and Masdar agreed to form a $2.2 billion 50/50 joint venture combining their onshore renewable energy operations across nine Asian countries.

• Energy Capital Partners agreed to acquire EnergySolutions, a nuclear lifecycle services company, for around $2 billion from TriArtisan Capital Advisors.

• Blackstone and Tinicum agreed to acquire Senior (LSE: SNR), a UK aerospace and defense components manufacturer, for £1.4 billion, beating out Advent International and Arcline.

• Arxis, an Arcline Investment Management-backed maker of mission-critical aerospace and defense components, launched its Nasdaq IPO seeking to raise up to $1.06 billion at a price range of $25 to $28 per share.

• KKR has hired UBS to weigh options for its majority stake in Synergis, an Australian disability housing business that could be worth up to A$1 billion, per AFR.

• Francisco Partners agreed to acquire Blackline Safety (TSX: BLN), a Calgary-based connected worker safety technology provider, for up to C$850 million.

• OXIO and Newfoundland Capital Management agreed to acquire Telefónica México, the Mexican telecommunications unit of Telefónica (Madrid: TEF), for $450 million.

• Bureau Veritas (Paris: BVI) agreed to acquire Lotusworks, an Ireland-based provider of commissioning and quality assurance services for data centers and semiconductor facilities, for €375 million.

• Heartland Business Systems, a portfolio company of GenNx360 Capital Partners, acquired Applied Tech Solutions, a Madison, Wisconsin-based managed IT and cybersecurity services provider.

• FlexGen acquired Clean Energy Services (CES), a Houston-based provider of commissioning, maintenance, and remote monitoring services for utility-scale battery energy storage systems and solar assets, from 13Capital.

• GA Group, majority-owned by Oaktree Capital Management, acquired G2 Capital Advisors, an industry-focused investment bank and restructuring advisory firm.

• Efex, a portfolio company of Advent Partners, acquired Priority 1 IT, a Toowoomba, Queensland-based healthcare IT solutions provider.

• Lupin Limited acquired VISUfarma, a European ophthalmology pharmaceutical company, from GHO Capital Partners.

• AZZO, backed by Angeleno Group, acquired Qubits Energy, a Nashville-based provider of power and energy management solutions for data centers and mission-critical facilities.

• Supplier, backed by Norwest, acquired TealBook, a Toronto-based vendor master data management platform backed by Ten Coves Capital.

• EagleTree Capital acquired The Opus Group, a network of experiential, event, and brand marketing agencies, from Growth Catalyst Partners.

• MSCI (NYSE: MSCI) acquired PM Insights, a private markets data and analytics firm focused on secondary market reference data for private company securities.

• Antin Infrastructure Partners (Paris: ANTIN) acquired Sapphire Gas Solutions, a vertically integrated CNG and LNG solutions provider, from Apollo.

• First Reserve acquired a majority stake in Lindsey Systems, an Azusa, California-based provider of engineered solutions for transmission and distribution grid infrastructure.

• White Mountains Partners, an operating company of White Mountains Insurance Group (NYSE: WTM), acquired a majority stake in BaseSix Systems, a Marietta, Georgia-based provider of building systems integration and aftermarket services.

• Gamut Capital Management agreed to acquire Acousti Engineering, a Southeastern U.S. specialty interiors contractor, from Ardian.

• Closed Loop Partners' acquired a majority stake in Sutter Metals, a Tacoma, Washington-based metals recycling and scrap processing company.

• FFL Partners has hired Raymond James to find a buyer for Apex Infusion, an ambulatory infusion therapy provider, per Axios.

• Frontenac acquired Bill Gosling Outsourcing, a BPO platform providing accounts receivable management, customer experience, and back-office services, from Owner Resource Group.

• Sixth Street's Bay Collective agreed to acquire a majority stake in Sunderland AFC Women, a second-tier English women's football club.

• Uplift Investors acquired IMS Legal Strategies, a Dallas-based litigation services platform, from Trinity Hunt Partners.

• Graham Partners acquired Midwest Products & Engineering, a Milwaukee-based contract manufacturer of electromechanical and robotic-assisted surgical systems, from BPOC.

• Gamma Communications (LSE: GAMA), a British telecom company, is exploring a potential sale and has hired Barclays to manage the process, with early talks underway with multiple suitors, per Bloomberg.

• Olympus Partners invested in Vesta Foodservice, a specialty foodservice distributor focused on the Western U.S.

• SBA Communications (Nasdaq: SBAC) is exploring a potential sale after the cell tower operator received preliminary takeover interest from large infrastructure funds, per Bloomberg.

• Caylent, a portfolio company of Gryphon Investors, acquired Pronetx, an Amazon Connect consulting firm focused on customer experience services.

• Aeromax Industries, a portfolio company of Chimney Rock Equity Partners, acquired The Ely Co., a Torrance, California-based precision aerospace machining company.

• Vernacare, an H.I.G. Capital portfolio company, acquired Eakin Surgical Limited, a U.K. manufacturer of single-use surgical instruments.

• VITALSpace, a portfolio company of Heartwood Partners, acquired B.I.G. Enterprises, a California-based manufacturer of custom guard booths and protective enclosures.

• Office Ally, backed by Francisco Partners and New Mountain Capital, acquired Jopari Solutions, a Property & Casualty insurance clearinghouse and electronic claims processing provider.

• General Atlantic is preparing to launch a sale process for ACES, a San Diego-based autism treatment provider, per Axios.

• Liquid Environmental Solutions, a Goldman Sachs Asset Management portfolio company, acquired New Orleans Grease Trap Cleaning, a provider of grease trap and used cooking oil cleaning services.

• Superstep Capital merged JumpModel, an IFS ERP and cloud services firm, with Gogh Solutions, an IFS service management specialist, to create an independent IFS services platform.

• Bonaccord Capital Partners acquired a minority stake in Prime Finance, a San Francisco-based commercial real estate credit platform.

• Kelso & Company and ARA Services Partners invested in Beacon Communications, a Littleton, Colorado-based critical communications and security technology provider.

• Harrell-Fish, a portfolio company of New State Capital Partners and Amethyst Capital Group, acquired Ecofriendly Mechanical, a Bloomington, Indiana-based provider of sustainable and energy-efficient mechanical solutions.

• Optimove, backed by Summit Partners, agreed to acquire Smartico, a gamification-led CRM marketing platform for iGaming.

• Triton Partners agreed to acquire Integris Composites, a manufacturer of lightweight armor and protection solutions for defense and law enforcement, from Agilitas Private Equity.

• American Pacific Group acquired a majority stake in Dossier, a direct-to-consumer fragrance brand, from Otium.

Tech, Vertical SaaS, & Misc. Enterprise

• Sarvam AI, a Bengaluru-based developer of large language models for Indian languages, raised $350 million in Series B funding at a $1.5 billion valuation led by Bessemer Venture Partners, with participation from Nvidia, Amazon, and Prosperity7 Ventures.

• Xoople, a Madrid-based data infrastructure company that tracks physical change on Earth, raised $130 million in Series B funding led by Nazca Capital, with participation from MCH Private Equity, CDTI, Buenavista Equity Partners, and Endeavor Catalyst.

• Noon, a San Francisco-based AI product design platform, raised $44 million in seed funding led by Chemistry, with participation from First Round Capital, Scribble Ventures, Elevation Capital, Afore Capital, SV Angel, Homebrew, and Firestreak Ventures.

• Patlytics, an AI platform for patent lifecycle management, raised $40 million in Series B funding led by SignalFire, with participation from N47, Myriad Venture Partners, Relativity, Alumni Ventures, Antiportfolio Ventures, and BAM Corner Point.

• Mappedin, a Waterloo, Canada-based indoor mapping platform, raised $24.5 million in Series B funding led by Edison Partners, with participation from Betatron Venture Group.

• Natter, a New York-based AI conversation intelligence platform for enterprise, raised $23 million in Series A funding led by Renegade Partners, with participation from Kindred Capital, Costanoa Ventures, Rackhouse Ventures, Village Global, and Asymmetric Capital Partners.

• Daydream, a San Francisco-based AI-powered SEO agency combining AI agents with human experts, raised $15 million in Series A funding led by WndrCo, with participation from First Round Capital and Basis Set Ventures.

Fintech

• Modus, an audit technology platform that acquires majority stakes in accounting firm advisory entities, raised $85 million in seed and Series A funding led by Lightspeed Venture Partners, with participation from Comma Capital.

• True Footage, an Austin-based residential appraisal technology platform, raised $40 million in Series C funding led by Socium Ventures, with participation from Nava Ventures, Pilot Enterprises, Story Ventures, PagsGroup, and Mockingbird Capital.

Healthcare

• Syneron Bio, a Beijing-based macrocyclic peptide drug discovery platform, raised $150 million in Series B funding co-led by Decheng Capital and CDH VGC, with participation from True Light Capital, Qiming Venture Partners, BioTrack Capital, Lilly Asia Ventures, Sinovation Ventures, 5Y Capital, Gao Ling Venture Capital, GL Ventures, Biotech Development Fund, and Lenovo Capital.

• Sidewinder Therapeutics, a San Diego-based biotech developing bispecific antibody-drug conjugates for cancer, raised $137 million in Series B funding co-led by Frazier Life Sciences and Novartis Venture Fund, with participation from OrbiMed, Life Sciences at Goldman Sachs Alternatives, DCVC Bio, Samsara BioCapital, Longwood Fund, Astellas Venture Management, and Alexandria Venture Investments.

• Stipple Bio, a Cambridge-based biotech developing epitope-targeted antibody-drug conjugates for cancer treatment, raised $100 million in Series A funding co-led by RA Capital Management, a16z Bio+Health, and Nextech Invest, with participation from Emerson Collective Investments, GV, LoLa Capital Partners, and GordonMD Global Investments.

• SpectronRx, an Indianapolis-based radiopharmaceutical developer and contract manufacturer specializing in medical isotopes for diagnostic imaging and radioligand therapies, raised $85 million in new funding from OrbiMed.

• Life Biosciences, a Boston-based biotech co-founded by Harvard biologist David Sinclair focused on cellular rejuvenation through epigenetic reprogramming, raised $80 million in Series D funding.

• StairMed, a Shanghai-based implantable brain-machine interface company, raised $69 million in new funding led by Alibaba, with participation from Tencent, Fountainbridge Capital, OrbiMed, Oriza Seed, Qiming Venture Partners, Lilly Asia Ventures, and Source Code Capital.

• Yuzu Health, a third-party administrator providing infrastructure for health insurance plans, raised $35 million in Series A funding co-led by General Catalyst and Chemistry, with participation from Bain Future Back Ventures and Timeless Ventures.

Industrials, Greentech, & Other

• Firmus, an Australian AI data center developer focused on the Asia-Pacific region, raised $505 million in strategic equity funding at a $5.5 billion valuation led by Coatue Management, with participation from Nvidia.

• Hermeus, a developer of high-Mach unmanned defense aircraft, raised $350 million in Series C funding at a $1 billion post-money valuation led by Khosla Ventures, with participation from Canaan Partners, Founders Fund, RTX Ventures, Bling Capital, In-Q-Tel, Cox Enterprises, Pinegrove Venture Partners, Hercules Capital, and Trinity Capital.

• Also, a Palo Alto-based micromobility and autonomous delivery company spun out of Rivian Automotive, raised $200 million in Series C funding at a $1 billion valuation led by Greenoaks Capital, with participation from Prysm Capital.

• Starfish Space, a Tukwila, Wash.-based developer of robotic spacecraft for satellite servicing, raised $110 million in Series B funding led by Point72 Ventures, co-led by Activate Capital and Shield Capital, with participation from Industrious Ventures, NightDragon, NFX, Toyota Ventures, PSL Ventures, and Munich Re Ventures.

• Membrane Technology and Research, a Newark, California-based developer of membrane-based gas separation systems for industrial and carbon capture applications, raised $27 million in Series B funding led by Climate Investment, with participation from Hartree Partners.

• Sora Fuel, a producer of sustainable aviation fuel from air, water, and renewable energy, raised $14.6 million in seed funding co-led by Spero Ventures and Inspired Capital, with participation from Engine Ventures and Wireframe Ventures.

• Blackstone raised $10 billion for its fifth opportunistic credit fund.

• ArcLight Capital Partners raised $3.9 billion for its eighth infrastructure fund.

• Sumitomo Mitsui Financial Group and Nippon Life Insurance are in talks to launch a private credit fund targeting around $3.1 billion in initial capital, per Bloomberg.

• Gridiron Capital is targeting $2.5 billion for its sixth middle market buyout fund.

• NOVA Infrastructure raised $1.45 billion for its second middle market infrastructure fund.

• Eclipse, a Palo Alto-based venture firm, raised $1.31 billion across two funds — $720 million for early-stage Fund VI and $591 million for Early Growth Fund III, which targets companies approaching commercial scale in AI infrastructure, manufacturing, and defense.

• Jeito Capital raised €1 billion for its second biopharma-focused private equity fund.

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