Mubadala invests $1B in Luckin Coffee alongside Centurium

Abu Dhabi sovereign wealth fund Mubadala Investment Company announced Thursday that it has agreed to acquire a minority stake in Luckin Coffee ↗ 1.28%, China's largest coffee chain, in a transaction valued at approximately $1 billion alongside controlling shareholder Centurium Capital.mubadala

The deal, disclosed in an SEC filing, will see Mubadala and Centurium-related entities jointly report beneficial ownership of approximately 22.1% of Luckin on an as-converted basis. Mubadala's investment vehicle will also gain the right to nominate a director to Luckin's board while it holds at least 5% of the company. Notably, the transaction is not a new share issuance — a new fund vehicle in which Mubadala serves as a key limited partner is acquiring 241.095 million preferred shares from two legacy Centurium funds, leaving Centurium's beneficial ownership unchanged.finance.yahoo+2

A Bet on China's Consumer Sector

"We continue to see compelling long-term opportunities in China's consumer sector," said Mohamed Albadr, head of Asia, Private Equity at Mubadala. He described Luckin as a "differentiated, technology-enabled business" with data embedded across customer engagement, product development, and store operations.mubadala

The investment extends Mubadala's deepening ties with China's economy. The $385 billion sovereign wealth fund has invested more than $20 billion in China across more than 100 deals since 2015. Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed visited Beijing in April for talks on expanding bilateral relations. In his 2026 letter to partners, Mubadala chief executive Khaldoon Al Mubarak said China now anchors the fund's Asia strategy, with consumer industries among its priority areas.semafor+1

Luckin's Comeback Story

Founded in 2017, Luckin nearly collapsed in 2020 after an accounting fraud that led to its delisting from the Nasdaq and bankruptcy proceedings in the United States. After changes in ownership and management and millions of dollars in fines, the company rebuilt itself into one of China's dominant coffee platforms. As of June 30, it operated more than 36,000 stores globally, with cumulative transacting customers approaching 500 million. In the second quarter, Luckin reported net revenue of 15.9 billion yuan, up roughly 29% year-over-year, with operating profit rising about 22% to 2.1 billion yuan.thestandard+4

Broader Implications

The market is now watching whether Mubadala's involvement could accelerate Luckin's international expansion, particularly into the Middle East, and whether it signals progress toward a potential return to a major exchange listing. Luckin currently trades over the counter in the U.S. under the ticker LKNCY. Michael Chen, partner at Centurium Capital, said Mubadala's "global perspective and network" would support Luckin's continued development. The transaction remains subject to customary closing conditions.finance.biggo+2