Partners Group has agreed to exit its private credit and minority equity investments in Gong cha following TA Associates’ agreement to sell the global tea chain to Bain Capital.
Partners Group originally provided more than $200 million of financing as sole lender to support TA Associates’ acquisition of Gong cha in 2019 and also invested in the company’s equity.
During the six years following the investment, Gong cha expanded from approximately 1,000 stores to nearly 2,200.
Its international footprint grew from 17 markets to 33 markets, while the company now serves more than 150 million beverages annually.
Gong cha also expanded through M&A, including the acquisition of master franchise rights covering 170 stores in the U.S.
Operational investments included rollout of the company’s Digital Kitchen model incorporating automated beverage-dispensing technology.
Partners Group’s exit covers both the credit position created through its original financing and its minority equity investment.
The transaction also extends the firm’s private credit activity in Asia, where Partners Group has operated for approximately 15 years across senior and junior direct lending.
Partners Group manages more than $186 billion globally across private equity, private credit, infrastructure, real estate, royalties and special opportunities.
KEY QUOTE:
“During our investment period, Gong cha capitalized on multiple growth opportunities. Gong cha was a natural fit for our strategy, where we look to provide credit solutions to growing companies with strong competitive advantages and top-quality management teams.”
Zongwen Tan, Head Of Direct Lending Asia At Partners Group
