TAU is an investment firm established to generate above-market returns by upgrading global supply chains. Through our transformational, technology-driven approach, TAU will help its portfolio companies become sustainable leaders operating at scale in their industries, while delivering superior returns for owners and investors.
TAU Opportunities (Asia) Fund targets the $800 billion global apparel and textile supply chain. As e-retailers and online channels increasingly dominate the market, traditional retailers are being forced to adapt their business models. Underpinning this changing landscape is a need for the next generation of suppliers who can work closely with brands and retailers to meet their requirements on cost, quality, speed, capabilities, transparency, and sustainability. TAU’s disruptive business model was created to fill the gap between brands’ needs and manufacturers’ requirements.
TAU’s transformation approach engages leading brands and retailers in order to identify manufacturers that, with the help of strategic investment, can increased offered services and capacity to become preferred suppliers. 80% of the companies in TAU’s South East Asia deal pipeline have supply relationships with the buyers with whom TAU is already engaged, reinforcing TAU’s due diligence process, supporting demand forecasts at the deal level, and allowing three-way negotiations between TAU, the portfolio company, and the buyer.
TAU leverages technologies to create the manufacturers of the future. By investing in cutting-edge technologies such as predictive analytics, robotics and automation, advanced materials, and track and trace (i.e. Blockchain) technology, TAU will drive competitive advantages through increased scale, speed, data, and capabilities.
TAU’s on-the-ground deal and operations team spans Asia and New York. Our Asia headquarters in Hong Kong serve as the hub of all key investment activities and relationships with Asian sourcing teams of leading brands. The Asia team is supported by on-the-ground country representatives, in TAU’s target markets, with strong local networks and experience in the garment and textile industry. TAU’s New York-based team leads investor relations, innovation, and brand partnerships, building mutually beneficial relationships with leading brands in the US and EU.
TAU has built a strong pipeline of high-growth, values-aligned Asian apparel and textile manufacturers that (I) currently export to top global brands and retailers, (II) have a demonstrated track record of growth, quality, and strong product lines, and (III) offer attractive valuations for building scale, speed, and capabilities, particularly through technology investments. Many companies within TAU’s proprietary pipeline have been directly sourced through our relationships with leading brands and retailers in order to strengthen their supply chains
TAU’s investment parameters include: strategic equity stakes; effective governance; institutional-quality compliance and reporting standards; annual dividends; prearranged exit paths via vertical integration, secondary and trade sales, or initial public offering.
TAU’s approach targets both immediate improvement opportunities and longer-term sources of revenue growth, margin expansion, and sustainability, largely through cutting-edge technological investments and process improvements. TAU’s suppliers will be built around a core of innovation technologies that deliver efficiency while also meeting the levels of sustainability and transparency which consumers, brands, and retailers increasingly demand.
TAU has established relationships with top global buyers, including high-growth e-retailers, in order to implement a transformational investment model within their supply chains that will sustain long-term relationships with management and contractual agreements with our manufacturers. The breadth of TAU’s relationships spans over 50 global brands and retailers that have been cultivated through TAU’s internal brand ambassador program. Our top six relationships alone represent over $50 billion in annual sourcing volume.
TAU increases value for transformed portfolio companies based on enhanced revenue, increased capacity, and reduced risk through increased efficiency and TAU-led strategic buyer relationships. TAU’s carefully structured investments will drive upgrades in suppliers’ infrastructure, technology, process, skills, and capabilities, while providing liquidity and incentives to capital-constrained owners. TAU’s customer value creation strategy is built on two key pillars: I) Enhancing capabilities in apparel manufacturers through technology and operational investments, and II) shifting tactical production capacity closer to key export markets.
TAU recognizes the market benefits of sustainability and transparency as demonstrated in listed sector comparables in Asia, which meet top social and environmental standards. TAU has also seen increasing demand in the market from consumers and in conversations with brand and retailer partners. By adapting best practices of the most profitable market leaders, TAU sees a major opportunity to increase revenue and expand margins through improved productivity, efficiency, and quality. TAU’s strategic, operational, social, and environmental interventions align incentives at the factory level to catalyze a “race to the top.” As a strategic equity partner, TAU is uniquely positioned to accelerate this future of responsible and resilient supply chains with the capital, resources, and relationships to drive impact at scale.
We generate above-market returns by establishing unique capabilities to solve important market failures, create winners, and transform performance.
We work in spaces in which business is failing to deliver the right human outcomes, and support enterprises to consistently and profitably achieve those outcomes.
We make clear promises, deliver on them, and keep delivering on them.
We achieve scale. Intentions don’t matter; lasting and measurable results matter.
We make results and practices visible through metrics and monitoring for investors and stakeholders.