Carl Qin, 43, born in Liaoning, holds a Bachelor's degree in Business Administration from the University of Iowa and a Master's degree in Business Administration from the New York Institute of Technology. He worked for China Merchants Group and China Resources Group and has over ten years of senior management experience in private equity and portfolio investments. Carl is currently the Executive Director, General Manager, and CEO of China Resources Capital Management Limited.
Go all out every time, and every step counts
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He is competent. He restructured CR Capital Management. Under his leadership, the Company's assets under management have risen from several billion RMB to over 100 billion RMB in five years.
He is energetic. He enjoys poetry and reading, as well as playing soccer and tennis. At his initiative, the Company has established ten internal activity clubs.
He is modest. He was outspoken that he was "not satisfied" with his performance because the new tasks assigned by the Group were still being explored. He wants to train more excellent industrial fund professionals.
He is Carl Qin, Executive Director and Managing Director of CR Capital Management.
Another window opened up for Carl through a job transfer
There are many reasons for people to come to Shenzhen. Carl came to Shenzhen for a job transfer.
In 2011, at the age of 32, Carl became the Head of Institutional Business in Beijing for the Sales and Trading Department of China Merchants Securities. He was posted to Hong Kong and settled home in Shenzhen, so he often commuted between the two cities. He served as Secretary to the Board of Directors and Assistant to the Chairman of China Merchants Group. In 2014, Carl was transferred to the China Resources Group. In 2016, he was assigned by the Group to his current position at China Resources Capital Management Limited ("CR Capital Management"). It was in this year that Carl opened another window in his career. It was a challenging entrepreneurial journey.
What is CR Capital Management? Incorporated and operated in Hong Kong, CR Capital Management is a large Chinese state-owned enterprise directly under the Central Government. It is the CR Group's business unit for private equity investments. It is also the only platform that operates and manages the Group's industrial investment funds. It promotes the Group's industry-finance synergy and innovative development.
CR industrial investment funds have so far invested in approximately 200 projects in China and other parts of the world, with total assets under management of over RMB 130 billion. CR Capital Management has a total of 27 funds under management in China and other countries. It has three investment companies, i.e., CR SZITIC Investment, Global Buyout Fund, and Runge Fund.
It is difficult for people who are not employees of CR Capital Management to understand the significance of these numbers. Behind each of these numbers is a lot of hard work. Many people do not know that when Carl took over CR Capital Management in 2016, it was called Harvest Capital. Harvest Capital was founded in Hong Kong in 2006 and registered in Luohu, Shenzhen in 2013. It had focused on real estate private equity investments before 2016, with a management scale of just over RMB 6 billion. Harvest Capital had approximately 30 employees in Hong Kong and Shenzhen, but only one was in Shenzhen. Carl was required to restructure Harvest Capital and establish CR Capital Management. He was also expected to enable this industrial investment fund management platform of the CR Group to reach a management scale of RMB 100 billion during the 13th Five-Year Plan period.
In August 2016, Harvest Capital Partners Limited was renamed as China Resources Capital Management Limited. In March 2017, CR Capital Management was upgraded to the Group's Level 1 profit center as the key to the Group's strategy of two engines (merger integration, capital operation) and two wings (overseas development, Internet Plus) in the 13th Five-Year Plan. The capital engine is utilized to support the Group's industrial development and boost the Group's industry-finance synergy. In the years since then, CR Capital Management has undergone essential changes.
Industry-finance synergy: from zero to one
There is a key term that cannot be left out: the industry-finance synergy. Carl believes that they must use financial means to support their industrial development and create CR's distinctive industry-finance synergy.
There are both advantages and challenges in being supported by a "big tree". The CR Group has diversified businesses, covering consumer products, integrated energy, urban construction and operation, healthcare, technology, and emerging industries. Like other industrial capitals, CR Capital Management carries out its investment business with the support of the Group. Unlike other industrial companies, the CR Group has a more diversified industrial coverage. Therefore, CR Capital Management has access to a broader range of industrial support when making investments. At the same time, however, the market is highly competitive in areas in which CR Capital Management invests around the Group's main businesses. CR Capital Management must conduct long-term research on how to use its industry insights to make smart financial investments, and continue to practice in this regard.
"We must provide excellent, full lifecycle financial services around our customers and the industries in which we invest," said Carl. "We adopt an open partnership model rather than a traditional investment management model. Fund investors can participate in investment decisions. We should get deeply involved in the business development of our portfolio companies, rather than simply making financial investments. This is the biggest difference between CR Capital Management and other companies when making industrial investments. Our team members must understand both industry and finance."
Carl explained that the majority of CR Capital Management's funds are co-financed by the Company, industrial companies, and market-oriented partners. The CR Group's contribution is no more than 25% of the fund scale, which includes the joint contribution from CR Capital Management and the industrial companies. The remaining 75% of the funds are market-based contributions.
"We must invest using industrial thinking and financial instruments." After a long period of practice, CR Capital Management has developed its investment logic and management model and built a unique SOE platform. CR Capital Management is a subsidiary of the CR Group, a Chinese state-owned enterprise directly under the central government. It adopts a joint decision-making mechanism that takes into account both industry and finance. Focusing on the key industries in which the Group operates, CR Capital Management invests in a wide range of sectors including healthcare, integrated urban development and operation, consumer products, new energy, technology innovation, energy conservation, and environmental protection. These investments are made through CR Capital Management's fund platforms in China and other countries under the full authority of the Group. With the joint efforts of all its employees, CR Capital Management has utilized its diversified capital channels and highlighted its role as a bridge between industry and finance. CR Capital Management started from scratch and eventually excelled in the market competition.
By the end of 2021, CR Capital Management had invested in approximately 200 projects worldwide with total assets under management of RMB 130 billion. CR Capital Management has received many awards, such as The Best PE Investment Institution in China and The Most Influential PE Investment Institution, from Zero2IPO Group, ChinaVenture, China Bridge, FOF Weekly, and other private equity authorities. Carl was awarded as one of the 30 GP Young Leaders of the Year for China's investment institutions in 2020.
By focusing on long-term benefits and working hard, we will be rewarded.
There is no such thing as a free lunch. No one succeeds easily. Even Carl, an experienced entrepreneur, went through many trials and tribulations during the first three difficult years of establishing the business. Fortunately, he received a lot of support from his colleagues throughout the process, and thus eventually overcame the difficulties and achieved excellent results.
CR Capital Management has expanded from managing a few billions RMB in assets to managing several hundred billion RMB today. It has grown from a team of only 30 members to a business with approximately 200 employees. All of the Company's funds are making profits. It has upgraded to the Group's equity investment platform. In just five years, CR Capital Management has exceeded expectations and accomplished the tasks given to it by the Group. However, Carl said, "I am not satisfied with my achievements".
"The focus during the 13th Five-Year Plan period was on scale, and the focus during the 14th Five-Year Plan period will be on quality and efficiency. We used to focus on the Group's business layout. However, our task now is to incubate and nurture new industries and new profit growth points for the Group." It will be difficult to accomplish many projects, but I remain optimistic about the future," said Carl frankly. To support the country's and the Group's strategy, CR Capital Management will focus on investments in new materials, new forms of consumption, new cities, carbon peaking and carbon neutrality, innovation, and entrepreneurship. We have made breakthroughs in new materials, carbon peaking, and carbon neutrality.
"It often takes more than a decade, or even two decades, to incubate and nurture new industries. We must focus on the long-term benefits, become partners with our portfolio companies, and grow together with them. By working hard and relentlessly, we will be rewarded." Additionally, Carl sincerely expressed his hope that he would have the opportunity to support the development of industries in Luohu while exploring, incubating, and nurturing new industries.
Carl sees Luohu as both historical and modern. It is in a favorable location where people can enjoy a convenient and wonderful lifestyle. The urban renewal in recent years has opened up a whole new dimension of imagination in Luohu. Carl visits The Mixc, the Art Exhibition Center, the Furniture Mall, and the AKD Luxury Cars Mall from time to time because he believes that investments should be based on life. The Company has a strong connection with Luohu. The Luohu District Government has attached great importance to and provided a lot of support for the development of CR Capital Management. Carl has also received thoughtful talent services. He is looking forward to Luohu becoming more distinctive through urban renewal, where there can be both historical elements and trendy styles.
"Go all out every time, and every step counts." Carl says this to encourage his team and himself. Although he believes that he should have performed better, he is very proud of his team. He praised them for being young, energetic and competent, and also for having a great team spirit. He hopes that every CR Capital Management employee will bring more value and be committed to incubating new industries and boosting industrial development, thus creating a better future together. He also hopes that he can train more excellent industrial fund professionals in the future.
Life is full of uncertainties. Instead of worrying too much about the trials that lie ahead, we must focus on our current mission. There are always dreams that keep people moving forward. Carl, who enjoys studying history, is more steadfast and balanced in the pursuit of his dreams. Everyone has their dreams, and in Carl's dreams are all wonderful things.
Information source: Luohu District Talent Work Bureau
Edited by: Luohu Elite
