Mubadala has agreed to take a significant minority position in Luckin Coffee alongside Centurium Capital in a transaction valued at approximately $1bn. Rather than a primary capital raise, the deal is structured as a secondary transaction. According to an SEC filing, the transaction did not involve new share issuance for financing.

Instead, a new fund vehicle with Mubadala as a major limited partner acquired 241.095 million Luckin senior convertible preferred shares held by two existing Centurium funds. The purchase is being executed through an entity named Success Cup Limited, and Centurium’s own beneficial ownership remains unchanged. In practice, Mubadala is anchoring a continuation-style vehicle that allows Centurium to recycle capital out of an ageing position while retaining control of the asset.