Key Takeaways
- • Ares Management led a €300 million single-asset continuation vehicle for Europastry, a Barcelona-based frozen bakery company, enabling MCH Private Equity to extend its ownership stake beyond traditional exit timelines while funding the company's international expansion.
- • The continuation fund attracted a diversified investor base including the Asset Management Umbrella Fund (advised by the European Investment Fund) and existing investor Newbury Bridgepoint, reflecting strong institutional appetite for structured secondaries solutions in mid-market Europe.
- • Europastry, founded in 1987 and operating in over 80 countries with €1.6 billion in annual revenue, has withdrawn its IPO twice since 2024 due to market volatility, making the continuation vehicle a practical alternative to traditional public markets exit.
- • The transaction underscores the growing utility of continuation vehicles as a liquidity mechanism in challenging private equity exit environments, with Ares' Secondaries Group managing over $42 billion in assets as of end-2025 across multiple alternative asset classes.
- • MCH Private Equity has maintained its Europastry investment since 2011, with the continuation structure allowing the firm to support the company's next growth phase across its 30 production facilities and 4,900-product portfolio.
Summary
Ares Management has backed a €300 million single-asset continuation vehicle for Europastry, a Spanish premium frozen bakery manufacturer, through its secondaries platform in partnership with MCH Private Equity. The transaction represents an alternative liquidity solution for MCH following Europastry's unsuccessful attempt to pursue public markets exit, having withdrawn its IPO twice in 2024 citing unfavorable market conditions and weak investor demand.
Structured as a continuation fund, the vehicle allows MCH Private Equity to retain its controlling stake in Europastry—held since 2011—while securing capital to accelerate the company's international expansion and innovation capabilities. The transaction attracted institutional capital from the Asset Management Umbrella Fund, advised by the European Investment Fund, alongside existing shareholder Newbury Bridgepoint. This diversified investor composition reflects broader institutional recognition that continuation vehicles provide a pragmatic solution in an environment where traditional private equity exits such as IPOs and trade sales face headwinds.
Europastry, headquartered in Barcelona and founded by the Gallés family in 1987, generated €1.6 billion in revenue last year and operates 30 production facilities across more than 80 countries, serving a portfolio exceeding 4,900 products. The company's scale and geographic reach in premium bakery products align with structural demand tailwinds in frozen convenience foods globally.
Continuation vehicles have gained significant traction in the private equity market as a liquidity mechanism, enabling portfolio companies and sponsors to navigate prolonged holding periods without forced exits at unfavorable valuations. Ares' Secondaries Group, which invests across private equity, real estate, infrastructure, and credit, managed over $42 billion in assets as of end-2025, positioning it among the largest capital allocators in the secondary markets space. The Europastry transaction exemplifies Ares' growing presence in European mid-market continuation structures and its strategic positioning in the evolving alternative finance landscape.
Structured as a continuation fund, the vehicle allows MCH Private Equity to retain its controlling stake in Europastry—held since 2011—while securing capital to accelerate the company's international expansion and innovation capabilities. The transaction attracted institutional capital from the Asset Management Umbrella Fund, advised by the European Investment Fund, alongside existing shareholder Newbury Bridgepoint. This diversified investor composition reflects broader institutional recognition that continuation vehicles provide a pragmatic solution in an environment where traditional private equity exits such as IPOs and trade sales face headwinds.
Europastry, headquartered in Barcelona and founded by the Gallés family in 1987, generated €1.6 billion in revenue last year and operates 30 production facilities across more than 80 countries, serving a portfolio exceeding 4,900 products. The company's scale and geographic reach in premium bakery products align with structural demand tailwinds in frozen convenience foods globally.
Continuation vehicles have gained significant traction in the private equity market as a liquidity mechanism, enabling portfolio companies and sponsors to navigate prolonged holding periods without forced exits at unfavorable valuations. Ares' Secondaries Group, which invests across private equity, real estate, infrastructure, and credit, managed over $42 billion in assets as of end-2025, positioning it among the largest capital allocators in the secondary markets space. The Europastry transaction exemplifies Ares' growing presence in European mid-market continuation structures and its strategic positioning in the evolving alternative finance landscape.
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