PAI Funds Nestle Ice Cream JV With €3.6 Billion of New Equity

European private equity firm PAI Partners has amassed €3.6 billion ($4.2 billion) in new equity for its ice cream venture with Nestle SA, to help it hold onto the asset even longer.

In one leg of the multipart deal, the Abu Dhabi Investment Authority will become a minority co-investor in Froneri, alongside PAI, according to the statement on Thursday that confirmed an earlier Bloomberg News report. ADIA and PAI are jointly investing €1.4 billion directly in the business, whose brands include Häagen-Dazs in the US, people familiar with the matter have said.

PAI, which owns roughly 50% of ...