On September 10, it was reported that Abu Dhabi's sovereign wealth fund, Mubadala Investment Company, has reached an agreement to make a strategic minority investment in Luckin Coffee Inc. (Nasdaq: LKNCY). The investment is being conducted jointly with Luckin Coffee's controlling shareholder, Centurium Capital, with the total transaction valued at approximately $1 billion, subject to customary closing conditions.

According to the 13D filing submitted by Luckin Coffee to the SEC, this transaction does not involve the issuance of new shares by the company. Instead, a new fund vehicle, for which Mubadala serves as a significant limited partner, will acquire a total of 241.095 million preferred shares of Luckin Coffee held by two existing funds under Centurium. Notably, Centurium's beneficial ownership remains unchanged following the transfer.

If the approximate $1 billion total corresponds fully to the 241.095 million preferred shares, the implied price would be roughly $4.15 per share. Converted at a ratio of 8 ordinary shares per American Depositary Share (ADS), the implied price per ADS is approximately $33.18, which is close to the market price observed in early September. The filing also reveals that Camel ZQ, an affiliate of Centurium, sold shares at approximately $34.39 per ADS on September 4 and executed a block trade at approximately $31.99 per ADS on September 9.

Mohamed Albdah, Head of Asia at Mubadala Investment Company, stated that Mubadala continues to see strong long-term investment opportunities in China's consumer sector. He highlighted that Luckin Coffee's digital capabilities, which cover user operations, product development, and store management, combined with its scale advantages and product innovation strength, enable the company to effectively respond to evolving consumer demands. Mubadala, leveraging its long-term partnership with Centurium Capital, aims to support Luckin Coffee's continued growth both in China and internationally.

As of June 30, 2026, Luckin Coffee operates a total of 36,310 stores globally, comprising 23,734 self-operated stores and 12,576 partnership stores. In the second quarter, the company reported total net revenue of RMB 15.886 billion, representing a year-over-year increase of 28.5%. Monthly average transacting customers reached 112.7 million, while cumulative transacting customers approached 500 million.

Luckin Coffee's most recently disclosed equity investment was completed in stages from late 2021 to early 2022, with Centurium Capital and Joy Capital collectively investing approximately $250 million. As of February 28, 2026, Centurium Capital holds approximately 23.1% equity interest and 47.8% voting rights in Luckin Coffee, maintaining its position as the controlling shareholder.

Mubadala currently manages approximately $385 billion in assets. The institution has identified China's consumer industry as a key component of its Asian investment strategy, with its private equity operations focusing primarily on buyouts and late-stage growth investments. Beyond the capital relationship, market observers are closely watching whether this investment will accelerate Luckin Coffee's expansion into overseas markets such as the Middle East, and whether it will have any impact on the company's potential return to a mainboard listing.