CMC Capital's First Carbon-Neutral Fund Lands in Anhui with RMB 1 Billion AUM

By Yi Zhang

Edited by Zhiyan Chen

On September 7, CMC Capital completed the fundraising for its first carbon-neutral equity investment fund, the Huawen Qingneng Phase I Fund, with a total size of RMB 1 billion. The fund's LPs consist primarily of government guidance funds and industry-leading corporations. The cornerstone investor is Anhui Province's "Triple-One-Innovation" Phase II Fund, with additional participation from government capital including Chuzhou City Investment Group. On the corporate side, the fund attracted listed companies in the new energy sector such as Samsung Medical Group and Huilong Co., Ltd.

According to CMC Capital, the Huawen Qingneng Phase I Fund will leverage industrial resources from Anhui Province and strategic partners among listed companies in related sectors, focusing on new energy segments including lithium batteries, photovoltaics, hydrogen energy, and LNG. Its investment scope covers weak links in the industrial chain such as core components, upstream new materials, and high-end equipment. The fund will target growth-stage companies with clear paths to IPO.

CMC Capital was founded in 2010 by Li Ruigang, who serves as its founding managing partner. Over more than a decade of development, the dual-currency fund started in entertainment and media investment and gradually expanded into consumer and technology sectors. This push into new energy — a field with greater industrial depth — marks yet another new frontier in the primary market for this veteran of China's media industry, reflecting an adaptive response to the evolving investment landscape.

"The carbon-neutral-themed equity investment fund established in Anhui represents an important strategic deployment for CMC Capital in the new energy and new materials investment space. We believe that fostering and accelerating technological innovation and industrial upgrading in this sector holds significant importance for the country's high-quality development," Li Ruigang stated.

An Yong Waves learned that CMC Capital began planning to raise a RMB-denominated fund focused on new energy investment as early as 2021. It ultimately secured a public selection process to establish the fund in Anhui, becoming one of the first batch of cooperative management institutions for the province's "Triple-One-Innovation" Phase II Fund.

The fund's lead, Gu Xiaoli, managing director at CMC Capital, joined the firm in 2018 and has focused on new energy and technology investments for more than ten years. Prior to CMC Capital, he worked at KKR and Morgan Stanley, where he was extensively involved in investment and financing activities in clean energy and power sectors, as well as overseas listings and M&A transactions for multiple new energy companies.

Gu Xiaoli told An Yong Waves that in terms of sector selection, CMC Capital will deeply explore carbon-neutral-related technologies needed across various industries.

"We will focus on investment opportunities in relatively asset-light materials sectors with globally leading technologies," Gu Xiaoli said. "Backed by Anhui as a powerhouse province in new energy and manufacturing, along with close collaboration with various industrial partners, this provides fertile ground for CMC Capital to uncover under-the-radar projects."

Addressing the growing number of investment institutions focused on the new energy sector in recent years, CMC Capital believes its years of overseas resource networks can provide unique value-add for current Chinese new energy companies. "An increasing number of domestic new energy companies are going global and entering international markets. CMC Capital's overseas channel networks can help these companies rapidly establish overseas landing channels and industrial chain supporting infrastructure," Gu Xiaoli said.

Image source: IC Photo

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