PAI Partners has raised $4.2bn (€3.6bn) for its ice cream joint venture Froneri, bringing in Goldman Sachs Alternatives through a new single-asset continuation vehicle, while the Abu Dhabi Investment Authority joins as a significant minority co-investor alongside PAI and the vehicle.

The deal values Froneri, which produces Häagen-Dazs and other leading ice cream brands, at about €15bn including debt. It marks one of the largest continuation fund transactions in Europe this year.

Founded in 2016 as a 50:50 partnership between PAI and Nestlé’s R&R Ice Cream unit, Froneri has grown into a $5.5bn-revenue business competing globally with Unilever’s Magnum and other premium ice cream brands. The company expanded significantly with its $4bn acquisition of Nestlé’s US ice cream operations in 2019.

Investor demand for the Goldman-led continuation vehicle was oversubscribed, underscoring confidence in Froneri’s growth potential. PAI said the new capital will allow Froneri to leverage its “established value-creation playbook,” focusing on organic growth, operational efficiency, and further consolidation.

Nestlé, which retains its stake in the venture, said: “We welcome the new investment in Froneri and the continued commitment of PAI Partners. Froneri is a successful joint venture that continues to delight consumers as a strong player in the ice cream category.”

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