Tano’s second India fund reaches final close at $111m

Tano India Private Equity Fund II will follow the same investment philosophy as its predecessor, a $100 million vehicle that in 2006 and has provided growth capital to 10 India-based companies.

The first close on the second fund came in November 2010 at $54 million and a second close came in October 2011 at $97 million. Institutions that have committed capital include California-based Charles E. Johnson and family. Johnson, former formerly co-president of Franklin Templeton Investments and CEO of Templeton Worldwide Inc, founded Tano in 2004. Asia Alternatives Management is another investor.

Tano Capital focuses on innovative alternative investment opportunities in rapidly growing private companies in India and China which leverage directly off of the current consumption driven domestic booms in both markets. Its India operations are overseen by Carlton Pereira and Hetal Gandhi.

Amid an increasingly volatile macro environment since Tano's founding in 2004, the firm said in a statement that pessimism and uncertainty will generally lead into attractive deal opportunities.

"We are optimistic about the current market environment," said Johnson. "There is a lot of uncertainty on the macro front, in particular with respect to Europe and China, and this is creating a solid pipeline of new opportunities for us to review. Globally, valuations have been coming down along with P/E ratio, which is certainly our preferred type of climate to source new investments."

Tano's first India fund has made bets into sectors include manufacturing, financial services, healthcare and consumer discretionary. The firm has already realized two exits in the fund, and expects to achieve at least a couple more in the current year.

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• Topics
• South Asia
• Fundraising
• Infrastructure
• Tano Capital
• India
• Growth capital