(Yicai Global) Feb. 10 -- The founder and senior executives of China’s largest private carmaker Geely Holding Group have become shareholders of a private equity fund manager that invests in the fields of new energy vehicles and the Internet of Vehicles. 

Geely founder Li Shufu, Senior Vice President Li Xingxing, and Chief Executive Li Donghui have had interests in Wuhan Zhongqing Private Fund Management since Feb. 3, according to corporate information platform Tianyancha. VP Feng Qingfeng is the new legal representative of the the less-than-year-old fund manager, which raised its registered capital to CNY16.7 million (USD2.6 million).

An insider at Geely told the 21st Century Business Herald that the shift to electric and smart cars from fuel-driven and traditional vehicles is a reality and Geely has to deal with it, according to a report it published today.

Li, who is also Geely’s chairman, wants to take the technological high ground, but that requires a lot of capital. For instance, the Zhejiang province-based firm needs more financial support to enhance its ecological positioning around smart and electric vehicles, reduce its dependence on self-owned funds, and increase the investment scale, the insider noted.

“Geely needs to do three things: have the ability to design chips and develop operating systems as well as master a certain amount of data,” the person said, noting that to do so, the carmaker will need to make huge investments in research and development.

Geely also set up wholly owned Geely Tianjin Private Fund Management on Jan. 19, with a registered capital of CNY100 million (USD15.7 million).

Editor: Futura Costaglione