Bain Capital’s acquisition of Gong Cha may signal a shift in bubble tea investment strategy, as sector slows after years of rapid expansion
2-MIN READ2-MINZhu Wenqianin BeijingPublished: 3:00pm, 25 Aug 2026Fuelled by the bubble tea boom in recent years and an intensely competitive market, financial investors have shown growing interest in major brands, shifting their playbook from early-stage bets and initial public offering (IPO) subscriptions to full equity buyouts.Growth of mid to high single digits was now forecast for the sector in China, down from double-digit growth in previous years, analysts said.
In the latest development, global private investment firm Bain Capital said on August 6 that it had reached a deal to buy Taiwan-founded bubble tea brand Gong Cha Global from US private equity firm TA Associates and other shareholders.
Bain Capital would work closely with Gong Cha’s management team and focus on its store expansion in Japan, South Korea and the United States, it said in a statement.
With a larger store network and a market crowded with numerous players, the key challenge in China will be improving store economicsSandy Lim, S&P Global RatingsGong Cha operates almost 2,200 stores in 33 markets worldwide. Well-established across the Asia-Pacific – particularly Japan, South Korea and Australia – the brand is also expanding in the Americas and Europe.
