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Abu Dhabi’s sovereign wealth fund, Mubadala Investment Company, has emerged as a major backer of Luckin Coffee—China’s largest coffee chain—following a transaction valued at approximately $1 billion with private equity firm Centurium Capital.

According to a regulatory filing and an official corporate statement, the agreement grants Mubadala the right to appoint one member to Luckin Coffee's board of directors.

Indirect Investment Structure

Under the terms of the transaction, Mubadala becomes an indirect investor in Luckin Coffee after two investment vehicles affiliated with the Asia-focused private equity firm Centurium Capital sold approximately 241 million preferred shares in the coffee chain to a fund backed by Mubadala. Centurium has historically served as Luckin Coffee's primary private equity sponsor and lead shareholder.

Expanding Footprint in the Chinese Consumer and Tech Ecosystem

The deal aligns with Mubadala’s broader strategy to expand its investment portfolio across high-growth Chinese enterprises. The Abu Dhabi sovereign fund has steadily deployed capital into key Chinese market leaders across retail, logistics, and technology, including:

Shein Global Holdings: Fast-fashion e-commerce giant.

Zhuhai Wanda Commercial Management Group: Leading commercial property and shopping mall operator.

Full Truck Alliance: Digital freight and logistics platform.

JD Logistics: The specialized supply chain arm of e-commerce powerhouse JD.com.

Luckin Coffee’s Rapid Scale

Founded in 2017, Luckin Coffee has rapidly evolved to become China's dominant coffee retailer by store count, surpassing 36,000 locations nationwide. The chain built its market leadership around tech-enabled convenience, cost-effective pricing, and locally adapted product innovations, such as its widely popular raw coconut and cheese-flavored lattes. The capital infusion and governance backing from Mubadala further solidify the brand's institutional footprint as it pursues continued operational expansion.