US: Investors back apparel industry turnaround model
Tau Investment Management, which is working to turn around factories in poor countries beginning with the global apparel and textile supply chain, has secured investment from two key partners.
Human rights activist Alexander Soros and investment firm The Global Emerging Markets Group (GEM) will help Tau in its goal of turning around and growing companies currently undervalued due to social, environmental and operational challenges.
These issues have siphoned billions of dollars in value from the global manufacturing sector, according to Tau.
Soros described the new investment model as a "wholly unprecedented turnaround and growth equity vehicle".
"Beginning with the apparel trade, there are countless opportunities for revaluing companies within industries that until now have grown fast, grown dirty, and are in need of fundamental change," he noted.
"Tau has convened extraordinary talent to execute a disruptive thesis that will drive that change, and profit from it."
Tau founder and CEO Oliver Niedermaier added: "Our new allies send a strong message to the investment community that there are credible opportunities to create value through the reformation of supply chains."
For GEM founder and director Chris Brown, the Tau model is "among the most innovative I have seen in the last 20 years of alternative asset management," he said, citing the combination of transformational expertise, deployment of growth equity capital, and connection of suppliers with buyers in quantity.
Tau and GEM are currently evaluating a number of potential targets for investment across emerging and developing economies.
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