Partners Group Exits Gong Cha Investment After Bain Buyout

Swiss private equity firm Partners Group will exit its investment in Gong Cha. This follows Bain Capital's acquisition of the Taiwanese bubble tea brand from TA Associates in August. The firm announced it has reached an agreement to be fully repaid, as reported by Bloomberg. Partners Group provided over $200 million in financing to support TA Associates' purchase of Gong Cha in 2019. It held a minority equity stake in the company. The returns on this investment have not been disclosed.

Economic Challenges Ahead

Private credit is expanding in the Asia-Pacific region, but it still makes up a small part of the global $1.8 trillion market. The outlook for private credit fundraising faces challenges due to economic uncertainty, geopolitical tensions, and rising interest rates. Moody’s Ratings noted these factors could slow growth as investors become more cautious about illiquid assets. Despite exiting Gong Cha, Partners Group is actively seeking new investment opportunities in Asia. Clients are looking to diversify away from the United States, according to Andrew Bellis, global head of private debt.

Investment Strategy

Partners Group has deployed several billion dollars across more than 50 private credit investments in Asia over the past 15 years. The firm focuses on high-performing, defensive companies. It recently completed a $1 billion private credit mandate with a major institutional investor in Asia. This includes a discretionary tranche that it will manage along with co-investment capital. Currently, Partners Group oversees about $6 billion in private credit assets in the region.

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Based on reporting by: swissinfo.ch, businesstimes.com.sg