Tau Transformation Fund, L.P.
Last updated 12 May 2020, by Impactyield.
Emerging countries (256) / Asia (67) / South-Eastern Asia (21) / Cambodia (5)
TAU is a private equity firm established to generate above-market returns by radically upgrading global supply chains. TAU seeks to increase manufacturers’ profitability and scale, improve the lives of workers and the environment, and deliver superior returns to investors.
TAU’s top-down/bottom-up approach engages brands and retailers in order to identify investable suppliers and provide a secure market for companies post-investment, while implementing a comprehensive operations strategy designed to enable investee companies to become strongly profitable and sustainable industry leaders. TAU’s first focus is on strategic minority investments in the Asian textile and apparel industry and related technology solutions, and we have built a proprietary deal pipeline of 25 potential investee companies. Our focused investment approach aims to deliver on transformational operating/business plans, governance rights, Western-standard compliance, and annual dividends, in order to create strong exits through secondary sales, roll-ups, or listings.
TAU is raising $500 million for its textile and apparel strategy, with potential additional focus on footwear and home goods and sidecars for investors wishing to commit larger amounts.
The Fund’s investment objective is to generate value by making opportunistic investments in equity, equity-oriented or debt securities of high-growth and/or underperforming companies. The General Partner expects a majority of the Fund’s investments to be strategic minority stakes in unlisted companies. The Fund’s investment focus is the garment/textile industry in South and Southeast Asia, with potential additional focus on home goods and footwear.
of track record
the year funded
Equal rights to ownership basic services technology and economic resources
Encourage companies to adopt sustainable practices and sustainability reporting
Expand and upgrade energy services for developing countries
Full employment and decent work with equal pay
Increase access to financial services and markets
Key performance indicators
Asset manager: TAU Investment Management
Product track record: Fund has 11 years of track record
Target IRR: 15%
Committed Capital: 0 USD (US Dollar)
Target return category: Risk-adjusted market-rate of return
Fund domicile: Cayman Islands
Product status: Open - committed capital
Style/Stage: Buy Out, Growth Stage, Late Stage
Inception year: 2012
Vintage year: n.a.
Target region: Asia, Cambodia, Emerging countries, South-Eastern Asia
Target close date: 01/12/2014
Product term: 8 years from the Final Closing of the Fund, subject to two consecutive one-year extensions
Assets under management: 500,000,000 USD (US Dollar)
Investment size: Min: 15,000,000; Max: 40,000,000; Avg: 25,000,000
Co-investment policy: LPs have priority, With LPs and non-LPs
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 0
Fund investments to date exited or repaid: 0
Management fee: 2%
Carried interest: 20%
Hurdle rate: 8%%
GIIN Investors' Council Investment: No
Limited Partners / Investors: Alexander Soros, founder of Soros Brothers Investments; Jerry Yang, Yahoo co-founder; Global Emerging Markets Group (GEM)
Limited Partner / Investor Type: Development Finance Institution (DFI), Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors
Phone number: 1 (646) 797-4700
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Chief of Staff
TAU is investing in capitalist solutions to capitalism’s failures, with a transformation strategy that will deliver significant positive environmental and social impacts alongside financial returns.
Global supply chains are in crisis. Decades of outsourcing and offshoring have reduced costs for corporations, but have also brought calamitous risks and inefficiencies. In the "race to the bottom," a garment factory collapse kills hundreds of workers and throws an entire industry into turmoil; toxins in Chinese baby formula, or oil spills in American waters, grossly undermine public trust in brands and result in harsh regulation. Quality suffers, productivity stagnates, and workers and natural environments are degraded or even destroyed. These failures have a moral color, but their effect is also to sap profits and siphon value. Modern production systems are teeming with turnaround opportunities, but to date, investors have not seized upon them.
Tau changes that. Tau invests directly in unsustainable suppliers, bringing the capital and expertise required to turn them into the leading sustainable competitors operating at scale in their industries. The firm then slots these transformed suppliers into the supply chains of major global brands, creating improved transparency and performance across the supply chain while achieving above-market returns.