Latest developments in the private equity sector over the past week
In a significant move, Goldman Sachs Asset Management has announced a strategic investment in Froneri, the world's second-largest ice cream producer, valued at around €15 billion ($17 billion). This investment comes through a continuation vehicle (CV) structure arranged by PAI Partners, a major French private equity firm that co-founded Froneri with Nestlé in 2016.
Froneri's Growth and Investment Details
Since its inception, Froneri has grown into a global powerhouse in the ice cream market, with a presence in 23 countries and approximately 15,000 employees. The company owns iconic brands such as Häagen-Dazs and Oreo ice cream products. The continuation vehicle structure allows PAI to maintain ownership control while also leveraging Goldman Sachs' capital, reflecting a growing trend in secondary transactions in private equity.
The Rise of Private Equity in the Ice Cream Market
The global ice cream market is projected to grow at a compound annual growth rate (CAGR) of about 5.4% through 2030, driven by evolving consumer preferences despite challenges like inflation and supply chain issues. Private equity firms are increasingly targeting the ice cream sector as a strategic consolidation opportunity, combining scale with financial innovation to enhance value. Goldman Sachs' move underscores the sector's appeal to the PE industry, with its predictable demand and opportunities for operational efficiencies.
Competitor Moves and Market Outlook
Meanwhile, another giant in the ice cream industry, Unilever, is preparing to spin off its ice cream division into a standalone business called The Magnum Ice Cream Company (TMICC). Post-demerger, Unilever plans to retain a minority stake (less than 20%) but will gradually reduce it over time, indicating a strategic reorientation within the sector toward focused ice cream businesses and the capital market.
The current state of private equity investments in the global ice cream market is notably active and evolving. Goldman Sachs' entry into Froneri is a testament to the sector's growth prospects, while Unilever's restructuring suggests an ongoing wave of corporate and PE-driven transformations in this consumer segment.
Additional Investments and Market Trends
In related news, KKR and Capital Group are launching a new hybrid equity fund called Capital Group KKR US Equity+. The fund is expected to debut in early 2026, subject to regulatory approval. The investment will support Dishoom's international growth plans, including the launch of its first US location in 2026. The deal marks one of the largest private equity continuation deals to date and follows a successful Dishoom pop-up in New York last summer.
The push to broaden access to alternative assets is gaining momentum, with the current state of private equity investments in the global ice cream market being a prime example. For the latest news and updates in this sector, visit our website.
- Goldman Sachs' strategic investment in Froneri, the world's second-largest ice cream producer, was facilitated through a continuation vehicle (CV) structure arranged by PAI Partners, a private equity firm.
- This investment reflects a growing trend in secondary transactions in private equity, as firms like PAI sought to maintain ownership control while leveraging Goldman Sachs' capital.
- The global ice cream market is experiencing significant growth, with private equity firms viewing the sector as a strategic consolidation opportunity, blending scale with financial innovation to create value.
- Meanwhile, Unilever is restructuring its ice cream division, spinning it off into a standalone business called The Magnum Ice Cream Company (TMICC), and plans to gradually reduce its stake over time.
- KKR and Capital Group are launching a hybrid equity fund, Capital Group KKR US Equity+, which will debut in early 2026, subject to regulatory approval, and support Dishoom's international growth plans, including the launch of its first US location in 2026.
