One month after the official announcement, Boyu Capital has finalized the funding for its acquisition of Starbucks China's 60% stake.
Eight years later, Starbucks China's valuation has declined instead of rising, with Boyu Capital securing 8,000 stores for $2.4 billion. According to disclosed information, Boyu Capital needs approximately $2.4 billion (around ¥16.5 billion) to complete the transaction.
As a private equity firm, Boyu typically follows two investment approaches: raising funds first and then seeking projects, or identifying projects first and then raising capital. This acquisition likely follows the latter model.
The acquisition vehicle is expected to be a newly established equity fund in Ningbo: **Boyu Xinzhi Xinchang (Ningbo) Equity Investment Partnership (Limited Partnership)**
On December 1, 2025, Ningbo’s state-owned fund, Ningbo Yongyuan, announced the establishment of this new fund via its official social media account. The announcement strongly suggests that this fund is the acquisition vehicle for the Starbucks deal.
The collaboration was likely finalized earlier this year, as Boyu Capital’s key figure, Jiang Zhicheng, became a "new member" of Ningbo’s state-owned fund network.
In the following days, disclosures from three listed companies revealed more details about the Boyu Xinzhi Xinchang fund:
- **CATL**, **CMOC**, and **Yitai B** each committed ¥500 million as limited partners (LPs). - The fund’s total subscribed capital is ¥4 billion, with Boyu-affiliated companies acting as the manager and general partner. The final fund size may expand to ¥8–10 billion as needed. - Ningbo Yongyuan Investment is also likely an LP. Including the three listed firms, ¥2 billion has been secured. - Given historical partnerships, if CMOC and CATL are involved, Tsingshan Holding (led by Xiang Guangda) may also participate. - Including Tsingshan, the total LP commitments could reach ¥2.5 billion.
Additional reports from Bloomberg on November 19 indicated that Boyu plans to bring in **Tencent** and **Singapore’s GIC** as external investors. With these additions, the initial ¥4 billion fundraising target is likely met.
In just 28 days after project confirmation, Boyu leveraged its influence to secure ¥4 billion in equity funding. The remaining ¥12 billion required for the full ¥16.5 billion transaction will likely be covered via acquisition financing.
On November 6, Bloomberg reported that **Ping An Bank**, **Industrial Bank**, and **China Minsheng Bank** were close to finalizing a $1.4 billion (¥10 billion) seven-year syndicated loan to support the acquisition.
Within a month, Boyu secured the entire ¥16.5 billion funding: - **¥4 billion** from equity investors (Ningbo state capital, Yitai, CMOC, CATL, and potentially Tsingshan, Tencent, and GIC), with a 12-year term (extendable). - **¥10 billion** in acquisition loans from three Chinese banks, with a seven-year term. - The remaining gap will be covered by additional LP investments.
Boyu Capital’s influence, network, and negotiation efficiency remain unparalleled.
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