Boyu Capital is in talks to bring in Tencent, Singapore’s GIC and possibly other investors as limited partners in its planned investment in Starbucks’ China business, as reported by Bloomberg.

The US coffee chain recently agreed to sell a majority stake in its China retail operations to Boyu for $4bn.

The transaction involves the creation of a joint venture in which the private equity company would own up to 60% of Starbucks’ retail business in the country.

Starbucks will retain a 40% stake and will continue to own and license the brand and intellectual property to the new venture. 

The China business, headquartered in Shanghai, is the company’s second-largest market with around 8,000 outlets.

Starbucks has outlined a target of around 20,000 stores in the country.

Boyu will focus on expanding the coffee chain beyond major urban centres, with an eye on smaller cities to support future growth.

It also aims to explore additional locations in high-traffic areas such as tourist destinations, metro systems and airports.

Discussions on the potential participation of other parties are ongoing and could still fall through.

Boyu was one of five shortlisted bidders selected by Starbucks in September 2025 for the sale of the China stake.

Boyu did not provide a response to enquiries, and spokespersons for Starbucks, GIC and Tencent also refused to comment.

Other international consumer brands besides Starbucks are seeking local backing to strengthen their position.

Restaurant Brands International recently agreed to divest a controlling interest in Burger King’s China operations to asset manager CPE, while Goldman Sachs secured exclusive negotiating rights for the purchase of Burger King’s business in Japan.