PAI, GSAM, ADIA Back €3.6B Deal to Extend Froneri Ownership - InforCapital

PAI Partners has raised €3.6 billion in equity to extend its investment in Froneri, the ice cream joint venture it formed with Nestlé. The transaction includes a continuation vehicle backed by Goldman Sachs Asset Management and a direct co-investment from PAI and the Abu Dhabi Investment Authority (ADIA), valuing Froneri at around €15 billion including debt.

The continuation vehicle raised €1.75 billion, while PAI and ADIA contributed another €1.4 billion in equity. The deal allows PAI to retain its approximate 50% stake in Froneri while offering liquidity to legacy investors and enabling continued ownership of a high-performing consumer asset.

Froneri owns a global portfolio of brands including Häagen-Dazs in the United States and has expanded aggressively since its formation in 2016. It was created through the merger of PAI's R&R Ice Cream with Nestlé's European ice cream operations. The venture has grown through acquisitions and market expansion, becoming one of the world’s largest ice cream companies, now present in over 25 countries.

This transaction marks the second time PAI has used a continuation fund to hold Froneri. In 2019, PAI moved the asset out of its Europe V fund into a new vehicle. The latest deal reflects a growing trend in private equity known as the CV-squared model, where sponsors roll the same asset into a second continuation structure to maintain ownership well beyond traditional fund timelines.

The Froneri deal is one of the largest of its kind in Europe and highlights the increased appetite among institutional investors for mature, high-growth consumer platforms. It also reflects broader market momentum behind continuation fund transactions as a liquidity solution for GPs and LPs.

With continued demand for premium consumer goods, especially in resilient categories like ice cream, and strong brand equity, Froneri is well positioned for long-term value creation under this extended ownership model.