A unit of Abu Dhabi's sovereign wealth fund, the Abu Dhabi Investment Authority, has become a minority co-investor in Haagen-Dazs ice cream maker Froneri, as the state-owned fund continues to diversify its portfolio.
The co-investment was made alongside French private equity company PAI Partners and a continuation vehicle led by Goldman Sachs's Vintage Strategies for a €3.6 billion ($4.23 billion) deal to create a new ownership structure for PAI's stake in Froneri, Adia said on Thursday.
Paris-based PAI controls 50 per cent of the ownership in Froneri, which is a joint venture between PAI and the ice cream division of Swiss food conglomerate Nestle.
The deal values the company at about €15 billion, Reuters reported, quoting sources.
The UK-based Froneri, whose ice cream portfolio includes Oreo, Cadbury, Milka and Rowntree's. Haagen-Dazs alose is present in more than 90 markets globally.
“Froneri is a leading global consumer business with strong prospects for the future,” Hamad Aldhaheri, executive director of Adia's private equities department, said in the statement.
“This transaction offers a compelling opportunity to support the company for its next phase of growth alongside experienced and proven partners.”
Investment ambitions
Adia, one of the world’s largest sovereign wealth funds, invests on behalf of the Abu Dhabi government. It is the largest sovereign fund in the Gulf, with assets touching $1.1 trillion, according to consultancy Global SWF.
Adia makes direct and indirect investments across asset classes such as equities, fixed income, infrastructure, private equity and property.
Adia last month said it plans to the continue investing selectively across assets classes this year, with a focus on private equity deals and will also seek to diversify its portfolio through alternative investments and private credit.
Global ice cream market
The global ice cream market remains fast growing segment, with size projected to pass $132 billion by 2032, from an estimated $79 billion last year, a compound annual rate of nearly 6.7 per cent, data from Fortune Business Insights shows.
“The renewed commitment of our partners, combined with the addition of new investors and capital, reflects confidence in our business and reinforces the strong partnership that underpins our growth,” said Phil Griffin, chief executive of Froneri.
Sovereign wealth funds, especially from the Middle East and North Africa, continue to be among the most active globally.
Adia was ranked the second most active SWF in the first nine months of this year, with $9.6 billion worth of investments, trailing only the $17.4 billion of Abu Dhabi's Mubadala, Global SWF said in its 2025 Mena Playbook report released on Wednesday.
Developed equities accounted for the largest portion of Adia’s portfolio last year, ranging between 32 per cent and 42 per cent, according to its annual report. Emerging market equities investments varied between 7 per cent and 15 per cent last year, it added.
“Froneri’s market positioning, attractive financial characteristics, exceptional operational execution and strong alignment with all key shareholders made it a strong continuation vehicle candidate,” said Gabriel Mollerberg, managing director of Goldman Sachs Alternatives.
PAI Partners' portfolio includes more than 100 buyout transactions and about €25 billion in realised cash proceeds, according to its website.
