Daniel Zhang, the former CEO of Alibaba Group, has taken on a new role as managing partner at China-based venture capital firm Firstred Capital. The announcement comes six months after Zhang’s departure from Alibaba. In his new position, Zhang will focus on exploring opportunities in merger and acquisition funds, as announced by Firstred Capital on its WeChat account.
Having stepped down from his position at Alibaba Group Holding last year, Daniel Zhang Yong now assumes the role of managing partner at Firstred Capital, a Chinese investment fund. With 16 years of experience at Alibaba, Zhang is expected to offer valuable expertise to his new position, where he will concentrate on Chinese mergers and acquisitions.
Firstred Capital was established in 2019 by Liu Xiaodan, former chairman of Huatai United Securities in the investment landscape. As outlined on its website, the firm’s focus areas include investments in the semiconductor sector and healthcare industries for both humans and animals.
Firstred maintains a relatively low profile within the investment sector, despite its noteworthy portfolio spanning diverse industries such as healthcare, consumer goods, industrial, and technology. The firm’s investments include stakes in prominent entities like BYD Semiconductor, a subsidiary of the world’s largest electric vehicle manufacturer, BYD, and chip manufacturer Jiangsu Changjing Electronics Technology, as listed on its official website.
Prior to founding Firstred, Liu held prominent roles as the president and chairwoman of leading Chinese brokerage Huatai United Securities and as chairwoman of AssetMark Financial Holdings, a New York-listed subsidiary of Huatai International Investment Holdings specializing in wealth management services across the United States.
Daniel Zhang, with Firstred founder Liu Xiaodan, expressed intentions to leverage their collective expertise in corporate management, industry operations, and capital markets to strengthen the firm’s core capabilities in future-oriented mergers and acquisitions.
Zhang’s departure from Alibaba Group coincided with the company’s restructuring, which was initiated approximately a year ago amidst escalating competition from rivals like Pinduoduo (PDD). The restructuring plan aimed to divide Alibaba into six distinct business units, each potentially pursuing an individual initial public offering (IPO). However, Alibaba decided to defer the listing of its logistics division and grocery chain in late 2023, marking a strategic pivot in its restructuring strategy.
Having joined Alibaba in 2007 as the Chief Financial Officer of Taobao, Zhang, known by his moniker “xiaoyaozi” or the “free and unfettered one,” played a pivotal role in steering Taobao to profitability. Notably, he is credited with pioneering the Singles’ Day shopping festival, which debuted in 2009 with sales totaling 50 million yuan.
Over the years, the Singles’ Day event has evolved into a global phenomenon, recording a staggering gross merchandise value of 540.3 billion yuan in 2021, according to Alibaba’s disclosed figures. Rising through the ranks, Zhang assumed various leadership roles within Alibaba, including President of Tmall and Chief Operating Officer, eventually ascending to the position of CEO in 2015 and succeeding founder Jack Ma as Chairman in 2019.
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