(Bloomberg) -- Former Alibaba Group Holding Ltd. chief Daniel Zhang has joined a little-known Chinese investment fund, a surprise twist to a long career during which he oversaw the rise and decline of the country’s highest-profile internet firm.

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Zhang will take up the role of managing partner at Firstred Capital, the investment house said on its official WeChat account. The former CEO will work alongside founder Liu Xiaodan, according to the brief post.

Zhang steered Alibaba through one of the most turbulent periods in Alibaba’s two-decade history, during which it weathered the pandemic, a deep economic downturn and a punishing crackdown on the country’s vast internet sector. He left abruptly in 2023 after Joseph Tsai and Eddie Wu, two of co-founder Jack Ma’s longest-serving lieutenants, took control of the company.

Read More: Alibaba Ousts Commerce Chief, Splits Assets in New Shakeup

As part of Zhang’s move, Alibaba will become an anchor investor in Firstred, according to a person with knowledge of the deal. The Beijing-based outfit, which maintains a fairly low profile, was founded in 2019 and focuses on M&A opportunities in healthcare, consumer, industrials and technology.

It raised 6.8 billion yuan ($945 million) from institutional investors including insurance companies and blue-chip corporations for its maiden M&A fund in 2021, according to Firstred’s website. It’s since invested in companies including BYD Semiconductor Co., chipmaker Changjing Electronics Technology Co. and pet healthcare specialist Ruichen Pet.

When Zhang stepped down as CEO, Alibaba said he will help run a $1 billion technology investment fund on its behalf, though it’s not clear whether the Firstred move is related.

Since his departure, the e-commerce firm has reshuffled its top ranks, switching leaders of divisions from its core online retail arm to Ele.me., and ramped up investments in AI.

Read More: Alibaba’s Ex-CEO Quits as Jack Ma’s Lieutenants Take Helm

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