Download the report
Share
Facebook
LinkedIn
X
Whatsapp
EmailIndependent Non-executive
Director interview
Janine Feng joined the Jardines Board in May 2023. She is a managing director at Carlyle, focused on Asian buyout opportunities in the financial services, consumer products and healthcare sectors. Since joining Carlyle in 1998, she has led various investments including Carlyle Asia Partners’ investments in China Pacific Insurance, Kaiyuan Hotel Group, Haier Electronics, Focus Media, and MicroPort.
Prior to joining Carlyle, she was a financial analyst and later a senior associate at Credit Suisse First Boston’s investment banking group in New York, where she focused on structured finance and project finance transactions for four and a half years. While at business school, she worked as a management consultant at McKinsey & Company, Inc.
In the almost two years since I joined the Jardines Board, Jardines has been through significant changes, appointing four new portfolio Chief Executives, and changing its governance structure to reflect a transition from managing the Group’s companies as an owner-operator to taking a portfolio management approach. Rather than delving into the operational decisions of individual portfolio businesses, Jardines has sharpened its focus on overall performance, strategy and accountability of each business through the boards.
Jardines is a complex organisation due to its diverse range of industries, geographies and companies. By selecting TSR as a benchmark, Jardines is able to better benchmark itself against the competition and assess its performance. I also see increased focus on getting the right objectives in place, for Jardines’ portfolio company leaders – supported by an enhanced incentive structure – making it clearer what we want them to achieve.
The main objective for PE firms is to buy and add value, and eventually sell a company for a profit in a certain time horizon. This means we are constantly evaluating the value of our portfolio and working under a strict time pressure to deliver results. As a long-term investor, Jardines can take a different approach. They have a longer runway to work on transformational projects and add value to businesses through comprehensive strategic planning and reinvestment into businesses.
The urgent nature of PE firms requires a strong emphasis on performance-driven accountability with clear KPIs at defined milestones. Jardines can benefit from adopting a similar focus on performance and accountability, helping drive results and ensuring alignment among management teams. In addition, the discipline PE firms exhibit in regularly evaluating investments can be valuable for Jardines: there can be more discipline in making that buy and hold decision, and knowing when it is time to exit.
Some of the changes are still in progress, but as Jardines moves away from an owner-operator model we can expect it to take a more holistic view of managing its portfolio. New governance and incentive structures will reinforce the responsibility of our portfolio company leadership teams for delivering on strategy and operational performance for their respective businesses.
Jardines’ sharpened focus on TSR should help align performance with market expectations and shareholder interests. This strategic shift will drive a more disciplined approach in evaluating and managing investments, and we can expect a stronger focus from the Board in ensuring every decision contributes to long-term shareholder value.
However, there is still a need for a cultural shift within the organisation towards a stronger performance-driven environment. Jardines’ leadership will need to work on building up essential industry expertise and investment capabilities to drive portfolio decisions and allocate capital effectively.
While these changes are taking place, it is important to remember Jardines’ strong fundamentals – a strong balance sheet, a focus on integrity, comprehensive risk management and its sustainability focus, as well as enhancing its strong networks and relationships here in Asia.
Janine Feng
Janine Feng joined the Jardines Board in May 2023. She is a managing director at Carlyle, focused on Asian buyout opportunities in the financial services, consumer products and healthcare sectors. Since joining Carlyle in 1998, she has led various investments including Carlyle Asia Partners’ investments in China Pacific Insurance, Kaiyuan Hotel Group, Haier Electronics, Focus Media, and MicroPort.
Prior to joining Carlyle, she was a financial analyst and later a senior associate at Credit Suisse First Boston’s investment banking group in New York, where she focused on structured finance and project finance transactions for four and a half years. While at business school, she worked as a management consultant at McKinsey & Company, Inc.
