European private equity firm PAI Partners has raised €3.6 billion ($4.2 billion) in fresh equity to strengthen its ice cream venture with Nestlé SA, enabling it to retain ownership of the business for a longer horizon.
As part of the deal, the Abu Dhabi Investment Authority (ADIA) will join as a minority co-investor in Froneri, the joint venture whose portfolio includes Häagen-Dazs in the US. ADIA and PAI will jointly inject €1.4 billion into the business, according to people familiar with the matter.
PAI, which holds about 50% of Froneri, is also setting up a new continuation fund to keep its stake. The fund, led by Goldman Sachs Asset Management, has raised €1.75 billion and represents a rare “CV-squared” deal — the second continuation vehicle established for the same asset. The transaction values Froneri at roughly €15 billion, including debt.
“Froneri has delivered highly attractive returns for our investors, which we believe will continue into the future,” said Richard Howell, Managing Partner at PAI. He added that continuation vehicles allow longer-term growth strategies beyond the standard five-year investment cycle.
Founded in 2016 after PAI merged UK-based R&R Ice Cream with part of Nestlé’s ice cream business, Froneri has grown into one of the world’s largest ice cream companies. PAI first shifted its stake into a continuation fund in 2019, raising around €2 billion with backing from GSAM and Carlyle’s AlpInvest.
The new deal underscores a growing trend among buyout firms to use continuation vehicles and similar structures to retain control of their strongest-performing assets, while tapping fresh capital for expansion.
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