Partners Group Closes Out Seven-Year Bubble-Tea Bet as Bain Capital Takes the Cup

Partners Group exits Gong cha after seven years, fully repaid on $200M financing as Bain Capital takes control.

The Taiwanese bubble-tea chain Gong cha is getting a new owner, and for Partners Group that means the end of a patient, seven-year credit-and-equity engagement that dates back to 2019. The Zug-based private markets investor confirmed on Monday that it will be fully repaid on the more than $200 million financing package it provided when TA Associates originally acquired the brand, along with the minority equity stake that accompanied the deal. The exit comes as Bain Capital steps in to take full control of the chain.

The transaction is a textbook illustration of how Partners Group's private credit machinery operates. Capital gets locked into growth companies that sit outside the traditional listed markets, often for years at a stretch, until a change of ownership or a refinancing event opens the door for an orderly withdrawal. In this case, the handover from TA Associates to Bain Capital provided that trigger, allowing Partners Group to recycle the freed-up funds into fresh mandates.

That capital is already finding a new home. Just over a week ago, the firm closed a $1 billion private credit mandate with a major institutional investor in Asia, a deal that Reuters has cited as evidence of rising institutional allocations to the asset class in the region. The Gong cha exit dovetails neatly with that strategy: mature positions are being wound down just as larger, newer commitments are being scaled up.

Listed Vehicle's Half-Year Numbers Cast a Shadow

While the credit side of the business moves quietly in the background, the equity arm is generating rather more noise. The half-year report from the listed vehicle Partners Group Private Equity Limited, published on Thursday, showed net asset value declining 8.6 percent on a total-return basis for the first half of 2026. The figures, which were still unaudited at the time of the accompanying investor webcast, reflect a portfolio snapshot as of June 30.

Despite the softer valuations, cash continues to flow back to investors. Roughly €111 million was distributed in the form of payouts, with a further €35 million returned through share redemptions. That combination — falling net asset value alongside ongoing capital returns — underscores the pressure that the current market environment is putting on private equity marks, even as the manager tries to maintain liquidity distributions.

The listed vehicle's numbers are not the only operational development in view. Earlier this month, Partners Group acquired a majority stake in AVK, a company supplying power to data centers, and has been in discussions about a possible investment in Aroma-Zone, a deal carrying a $2.3 billion valuation tag. On the cost front, the firm disclosed around ten days ago that it is deploying so-called agentic AI through the platform of portfolio company Emeria, a programme the company says is supporting a 130 basis point improvement in EBITDA margins there.

Shares Recover From Deep Discount

The market's reaction to the Gong cha exit itself has been muted, which is hardly surprising given the size of the position relative to the group's overall book. The share price has nonetheless found firmer footing in recent weeks. The stock closed Friday at €799.00, down 0.4 percent on the day but up 4.4 percent over the course of the week. Over the past 30 days, the gain stretches to 9.4 percent.

That recovery, however, needs to be measured against a far more sobering longer-term picture. The shares remain 25 percent below their level at the start of the year and are down 33 percent compared with the closing price roughly twelve months ago. The 52-week high of €1,240.00, reached in early September of last year, still sits 36 percent above the current price.

The recent bounce has unfolded against a backdrop that includes a Deutsche Bank Research downgrade to Hold with a reduced price target, published in early August. That call is now more than three weeks old and no longer reflects the latest price action, but it serves as a reminder that analyst sentiment has been cautious even as the stock has clawed back ground.

For Partners Group, the Gong cha exit closes a chapter that began with a classic private credit investment carrying an equity kicker. It also reinforces the broader narrative of a firm in constant motion — pulling capital out of mature holdings, ploughing it into new mandates, and expanding its Asian credit franchise — while the bigger headlines continue to be written by the equity side, where the AVK acquisition and the potential Aroma-Zone deal are keeping the deal pipeline busy.