Key Takeaways
- • Ares Management's secondaries platform has led a €300 million single-asset continuation vehicle for Europastry, enabling MCH Private Equity to extend its ownership stake in the Spanish frozen baked goods company beyond traditional exit timelines.
- • The continuation fund structure represents a strategic pivot following Europastry's two failed IPO attempts in 2024 due to market volatility and weak investor demand, demonstrating the growing viability of continuation vehicles as an alternative exit mechanism in challenging market conditions.
- • Europastry, founded in 1987 and headquartered in Barcelona, generated €1.6 billion in revenue last year and operates across 80+ countries with 30 production facilities, positioning the company as a scaled platform for international bakery expansion.
- • The transaction attracted institutional investor participation including the Asset Management Umbrella Fund (advised by the European Investment Fund) and existing investor Newbury Bridgepoint, underscoring strong conviction in the company's growth trajectory.
- • Ares' Secondaries Group, managing over $42 billion in assets as of end-2025, deployed capital to accelerate Europastry's international expansion and innovation capabilities in response to growing global demand for premium bakery products, with MCH maintaining investment since 2011.
Summary
Ares Management has successfully structured a €300 million continuation vehicle for Europastry through its secondaries platform, supporting MCH Private Equity's decision to retain ownership of the premium frozen baked goods manufacturer for an extended period. The single-asset continuation fund represents a capital solution designed to fund Europastry's next growth phase, particularly its international expansion and innovation capabilities in a market experiencing elevated demand for premium bakery products.
The transaction follows Europastry's withdrawal of two separate IPO attempts in 2024, which the company attributed to market volatility and insufficient investor appetite for a public listing. This decision reflects broader headwinds in traditional exit routes for mid-market private equity investments. Continuation vehicles have emerged as an increasingly popular alternative, allowing sponsors to maintain operational control and value creation while providing existing investors with liquidity and new capital partners with entry points into mature, cash-generative assets.
MCH Private Equity, a Spain and Portugal-focused investment specialist, has held its Europastry stake since 2011, and the continuation structure allows the firm to extend this holding while bringing in fresh institutional capital. The fund attracted a diversified investor base, including the Asset Management Umbrella Fund (advised by the European Investment Fund) and existing backer Newbury Bridgepoint, signaling institutional confidence in the company's fundamentals and growth prospects.
Europastry, established in 1987 by the Gallés family, operates 30 production facilities across more than 80 countries and maintains a portfolio exceeding 4,900 products, generating €1.6 billion in annual revenue. The company's scale and geographic footprint position it as an attractive platform for further international expansion, particularly in markets with growing consumer demand for premium frozen bakery offerings. Ares' Secondaries Group, which managed over $42 billion in assets as of end-2025 and invests across private equity, real estate, infrastructure, and credit, has deployed its expertise in structuring complex capital solutions to enable MCH's continued ownership while simultaneously providing institutional investors with exposure to a mature, diversified operating business.
The transaction follows Europastry's withdrawal of two separate IPO attempts in 2024, which the company attributed to market volatility and insufficient investor appetite for a public listing. This decision reflects broader headwinds in traditional exit routes for mid-market private equity investments. Continuation vehicles have emerged as an increasingly popular alternative, allowing sponsors to maintain operational control and value creation while providing existing investors with liquidity and new capital partners with entry points into mature, cash-generative assets.
MCH Private Equity, a Spain and Portugal-focused investment specialist, has held its Europastry stake since 2011, and the continuation structure allows the firm to extend this holding while bringing in fresh institutional capital. The fund attracted a diversified investor base, including the Asset Management Umbrella Fund (advised by the European Investment Fund) and existing backer Newbury Bridgepoint, signaling institutional confidence in the company's fundamentals and growth prospects.
Europastry, established in 1987 by the Gallés family, operates 30 production facilities across more than 80 countries and maintains a portfolio exceeding 4,900 products, generating €1.6 billion in annual revenue. The company's scale and geographic footprint position it as an attractive platform for further international expansion, particularly in markets with growing consumer demand for premium frozen bakery offerings. Ares' Secondaries Group, which managed over $42 billion in assets as of end-2025 and invests across private equity, real estate, infrastructure, and credit, has deployed its expertise in structuring complex capital solutions to enable MCH's continued ownership while simultaneously providing institutional investors with exposure to a mature, diversified operating business.
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