Partners Group is set to exit its investment in Gong cha after Bain Capital agreed to acquire the global tea chain from TA Associates, crystallizing returns for the private markets firm across both its private credit and minority equity positions.
Partners Group provided more than $200 million in financing as the sole lender to support TA’s acquisition of Gong cha in 2019, the company stated in a press release. The firm also invested in the company’s equity. Financial terms of the transaction between TA and Bain were not disclosed.
Gong cha has expanded rapidly since Partners Group backed the company, growing from about 1,000 stores in 2019 to nearly 2,200 locations across 33 international markets. The company serves more than 150 million beverages annually, according to Partners Group.
The tea chain has also pursued acquisitions and operational changes during the investment period. Gong cha acquired the master franchise rights for 170 stores in the U.S. and introduced its "Digital Kitchen" operating model, which incorporates automated beverage dispensing technology.
Partners Group said Gong cha’s expansion illustrates the type of growth opportunity it targets through its private credit strategy, particularly in Asia.
