Tano Capital has raised $97 million for the second close of Tano India Private Equity Fund II, which is targeting $150 million, according to a statement. The first close of the second fund, which will focus on mid-market companies in India, was made in November 2010 at $54 million. The fund, raised from offshore investors only, has seen commitments from family offices, institutions and fund-of-funds, among others.
Tano Capital LLC, which focuses on emerging Asian economies like India and China, has been founded in 2004 by Charles E. Johnson, former co-president of Franklin Templeton Investments and CEO of Templeton Worldwide, Inc. The firm’s first India fund raised $100 million and invested across 10 companies. Tano India Advisors is led by Hetal Gandhi and Carlton Pereira.
Tano Capital is looking to invest between $12 million and $20 million from the new fund across eight companies (approximately). The private equity firm, which has made several bets in manufacturing, engineering and healthcare space, will continue to look for invest opportunities in these areas, besides targeting others. It will also focus on sectors like infrastructure ancillaries, consumer discretionary, healthcare and manufacturing.
Charles E. Johnson, Tano Capital’s founder and managing director, said, “It has been the rock-solid performance of my Mumbai-based Indian partners, Mr Hetal Gandhi and Mr Carlton Pereira, through our affiliate Tano India Advisors, which has enabled us to achieve this excellent milestone in a most difficult fundraising environment.”
According to earlier reports, Johnson and family happen to be the anchor investor while Hong Kong-based Asia Alternatives Management LLC is one of the limited partners (LPs).
Tano Capital has made two exits – one through a strategic sale and another via open market sale. It had exited Shilpa Medicare Ltd, a listed manufacturer and exporter of active pharmaceutical ingredients, making returns of 4.5x last year. Shilpa later raised private equity funding from Baring Private Equity Partners India.
Tano also sold its minority stake in privately held Ravin Cables through a strategic M&A sale to Italy’s Prysmian. Milan-based Prysmian acquired 51 per cent controlling stake in Ravin Cables for Rs 200 crore in early 2010.
Earlier this week, Tano Capital’s portfolio company SSIPL Retail filed for an IPO while PME Power Solutions (India) filed for an IPO in July this year. Tano’s other portfolio firms include Virgo Engineers, ICOMM Tele, Anil Printers and ABG Motors.
Tano’s latest investment came in March this year when it put in Rs 24.4 crore or $5.4 million to acquire 14.7 per cent stake in oral care products manufacturer JHS Svendgaard Laboratories Ltd.