Partners Group exits Gong cha investment after Bain completes acquisition

Partners Group has sold its investment in Gong Cha, a Taiwanese bubble-tea brand, following Bain Capital's acquisition of the company in August. The Swiss-based private asset manager disclosed that it is obligated to be fully repaid as part of the agreement. In 2019, Partners Group had provided a financing package exceeding US$200 million to support TA Associates' acquisition of Gong Cha, taking a minority equity stake.

The returns on this investment have not been disclosed. Although private credit investments are expanding in Asia-Pacific, they represent a small fraction of the US$1.8 trillion global market. Moody’s Ratings predicts slower growth in private credit fundraising due to economic uncertainty, geopolitical tensions, and elevated interest rates.

Partners Group is actively seeking new investment opportunities in Asia, as clients aim to diversify away from the US. The asset manager has allocated several billion dollars in Asia across over 50 private credit investments over the past 15 years, with most investments made in recent years. Bellis, Partners Group's global head of private debt, stated that clients are increasingly allocating resources to Asia private credit.

In August, Partners Group closed a US$1 billion private credit mandate with a major Asian institutional investor, which includes a discretionary tranche to be managed by the company. Currently, Partners Group oversees approximately US$6 billion in private credit assets in the region, focusing on high-performing, defensive or less cyclical companies, steering clear of some of the most sought-after Asian financing areas. Recent investments have included education and corporate services companies.