Ares Management has led a €300m continuation fund for Europastry, supporting MCH Private Equity’s strategy to retain ownership of the frozen bakery business, according to sources cited by Bloomberg.

The single-asset vehicle was led by Ares’s secondaries platform and attracted a broad group of investors, including the Asset Management Umbrella Fund advised by the European Investment Fund and existing backer Newbury Bridgepoint.

The transaction enables MCH to extend its hold on Europastry following the cancellation of the company’s initial public offering in 2024 due to market volatility.

Continuation funds have become an increasingly important tool for private equity firms navigating a slower exit environment, offering liquidity to investors while maintaining exposure to high-performing assets.

Europastry operates in more than 80 countries and runs 30 production facilities. The company generated over €1.6bn in revenue last year.

Ares’s involvement highlights continued growth in the secondaries market, where investors are deploying capital into structured transactions that support longer hold periods and portfolio optimisation.

The deal underscores rising demand for continuation vehicles as private equity firms adapt to evolving market conditions and delayed exit timelines. 

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