Goldman Sachs is poised to become the lead investor in a continuation vehicle set up by PAI Partners to retain its stake in global ice cream manufacturer Froneri, in a deal that values the joint venture at approximately €15bn including debt, according to sources cited by the Financial Times.

The transaction, which could be signed as early as September, would mark one of the largest private equity continuation deals to date. Froneri was founded in 2016 as a joint venture between PAI and Nestlé, and has since grown into the world’s second-largest ice cream producer after Unilever’s Magnum Ice Cream Company spin-off.

Froneri owns household brands such as Häagen-Dazs in the US, as well as Oreo and Cadbury ice creams, and operates an expansive white-label business. Its revenues have more than doubled from €2.6bn in 2019 to €5.5bn in 2024.

This would be the second time PAI uses a continuation vehicle to extend its holding in Froneri. The first was launched in 2019 to capitalise on the company’s growth, particularly following Nestlé’s decision to transfer its US ice cream assets into the joint venture. The life of that initial fund is now nearing completion.

Under the proposed structure, PAI’s stake will be split between its latest flagship fund and the new continuation vehicle, while Nestlé will retain its 50% holding. PAI reportedly declined acquisition approaches from other buyout firms, choosing instead to pursue a secondaries-backed solution.

Goldman Sachs will deploy capital from its $14bn secondaries platform, which targets both traditional fund stakes and continuation vehicles. The deal underlines the growing use of secondaries capital to support high-quality portfolio companies in a constrained exit environment.

PAI, Goldman Sachs, Nestlé, and Froneri have declined to comment on the transaction.

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