Swiss asset manager Partners Group is exiting its private credit investment in bubble tea chain Gong Cha following Bain Capital’s acquisition of the company, Bloomberg reported.
Partners Group will be fully repaid on the investment and generate an undisclosed return, the report said.
The asset manager provided more than $200 million in unitranche financing in 2019 to support TA Associates’ acquisition of Gong Cha. Unitranche financing combines senior and subordinated debt into a single facility.
Bain Capital agreed to acquire Gong Cha from TA Associates and other shareholders in a deal valued at more than $635 million, Nikkei previously reported.
Bain and TA Associates have reached a definitive agreement and expect to complete the transaction by the end of the year. Several investment firms and restaurant operators submitted proposals, but Bain ultimately secured the deal.
Founded in Kaohsiung, Taiwan, in 2006, Gong Cha is known for its bubble tea and operates more than 2,000 stores across about 30 countries and territories in Asia, the US, and Europe.
The repayment comes as Partners Group expands its private credit business in Asia.
The firm recently secured a $1-billion Asia-focused private credit mandate from a major institutional investor in the region. The open-ended evergreen vehicle includes a discretionary tranche managed by Partners Group as well as capital for co-investments.
The mandate will target senior and junior direct-lending opportunities across multiple sectors and markets in Asia-Pacific.
Partners Group has invested in private credit in the region for 15 years and manages more than $40 billion in private credit assets globally.
