Starbucks has advanced several private equity firms to the second round of bidding for a strategic investment in its China operations, with KKR, Carlyle Group, and EQT among the key contenders, according to sources cited by Bloomberg.

Other shortlisted bidders include FountainVest, Boyu Capital, Primavera Capital, Hillhouse Investment, as well as Chinese tech giants JD.com and Tencent Holdings. The process, which initially drew more than 20 suitors, now moves into the due diligence phase, where around a dozen firms will gain access to Starbucks China’s financials to prepare formal offers.

Rather than raising capital, Starbucks is seeking a local partner to enhance its operational capabilities in its second-largest market globally. CEO Brian Niccol recently clarified that the process is “not about capital” but about strengthening the company’s brand and market positioning in China through better supply chain infrastructure, digital integration, and local expertise.

The Seattle-based coffee chain has ambitious plans to grow its Chinese store footprint from the current 7,800 to more than 20,000 over the coming years, underscoring the importance of finding a partner with deep regional knowledge and scale.

The outcome of this process could represent one of the most strategically significant private equity partnerships in Asia’s consumer sector this year, as global GPs continue to pursue differentiated opportunities in high-growth, domestically driven sectors like foodservice and retail.

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