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.

"During our investment period, Gong cha capitalized on multiple growth opportunities," Zongwen Tan, head of Direct Lending Asia at Partners Group, said. "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."

The exit comes as private credit investors increasingly look to demonstrate their ability to generate returns by financing companies through periods of expansion and then exiting alongside private equity sponsors.

For Partners Group, the Gong cha transaction also highlights its long-running presence in Asia’s private credit market. The firm said it has been active in the region for 15 years across senior and junior direct lending, supported by local investment teams.

Partners Group manages more than $186 billion in assets globally and invests across private equity, private credit, infrastructure, real estate, royalties and special opportunities.

Gong cha’s sale to Bain marks a change in ownership after six years under TA Associates. For Partners Group, meanwhile, the deal provides an exit from an investment that combined direct lending with an equity position in one of the world’s fastest-growing specialty tea brands.

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