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Adia eyes Haagen-Dazs parent company: Abu Dhabi Investment Authority is mulling investing at least EUR 1 bn in Nestlé’s ice cream joint venture with buyout firm PAI Partners, Froneri, which owns brands including Haagen-Dazs, Bloomberg reports, citing people with knowledge of the matter. The investment would potentially value Froneri at over USD 10 bn.
In context: This comes as co-owner PAI Partners looks to hold on to its 50% stake in Froneri for longer, with the PE firm seeking new investors, including sovereign wealth funds, for a continuation fund, which could also see it sell a minority stake to a long-term investor.
Uh, Enterprise, what’s a continuation fund? Continuation vehicles are becoming increasingly popular amid a slowdown in dealmaking in the West, with private equity firms moving old assets to new vehicles, allowing existing investors to either cash out and make room for new investors or roll their investments.
It’s still early stages: Adia tapped advisors to proceed with the investment, the sources said, adding that other investors could still emerge.
About Froneri: The company was established in 2016 as a 50:50 merger of Nestlé’s European ice-cream operations with PAI’s R&R Ice Cream, which the buyout firm acquired in 2013 for EUR 929 mn.
OTHER ADIA NEWS-
Adia invests in Arrow Global’s European real estate lending strategy: A subsidiary of Abu Dhabi Investment Authority (Adia) committed USD 400 mn to support London-based alternative asset manager Arrow Global’s European real estate lending strategy, according to a press release. The strategy provides senior secured capital to borrowers delivering high-quality, liquid real estate assets, supporting developers throughout their project lifecycles.
It’s not their first tie-up: The Abu Dhabi sovereign wealth fund previously invested in Arrow Global’s credit strategy, according to the statement.
Adia ❤️ European real estate…: The sovereign wealth fund upped its commitment to London-based alternative asset manager Cheyne Capital ’s capital solutions strategy — offering senior loans against European real estate — to GBP 650 mn (USD 831 mn) earlier in March.
… and private credit: ADIA previously ventured into private credit last year, backing a USD 5bn fund launched by Wells Fargo alongside asset manager Centerbridge and making a USD 932 mn investment in Australian real estate private credit company Qualitas Diversified Credit Investments. It also anchored European private credit manager Pemberton Asset Management’s new NAV strategic financing strategy in June, and poured USD 1 bn into Barclays and AGL Credit Management’s new private credit fund.
