Abu Dhabi sovereign wealth fund Mubadala Investment Company has agreed to take a minority stake in Chinese coffee chain Luckin Coffee as part of a transaction valued at around $1 billion, according to CNN. Mubadala is joining private equity firm Centurium Capital, Luckin's controlling shareholder, in backing the beverage retailer.
The investment is structured to support Luckin Coffee's ongoing development and international footprint. Founded in 2017, Luckin Coffee operates approximately 36,000 stores globally, with international outlets in Singapore, Malaysia, and the United States alongside its core network across China and Hong Kong.
Mohamed Albadr, head of Asia private equity at Mubadala, said the fund sees compelling long-term opportunities in China's consumer sector, pointing to Luckin's technology-driven operations and digital customer engagement. The exact financial terms and size of Mubadala's minority stake have not been publicly disclosed.
The deal fits into a broader investment push by Mubadala in China, where the fund has deployed more than $20 billion over the past decade through over 100 transactions across the consumer, healthcare, and technology sectors. Mubadala's holdings in the country include fast-fashion retailer Shein, UCB's pharmaceutical business in China, and Newland Commercial Management, supported by a Beijing office established in 2023.
CNN noted that sovereign wealth funds across the Gulf have expanded investments into Chinese consumer and tech businesses as Gulf economies seek diversification away from oil, referencing parallel strategic moves by Saudi Arabia's Public Investment Fund and the Qatar Investment Authority.
Sources
- CNN · 2026-10-08
