Akshay Tanna to leave TPG, joining KKR to head India PE business
Akshay Tanna’s early deals for TPG includes Sutures, Dodla Dairy, and Landmark Auto. He also helped TPG net big returns from investments in Nykaa and Lenskart.
Akshay Tannna, partner at TPG, is all set to join KKR & Co as a partner and head of its private equity business after spending over a decade in the Texas-headquartered fund, said people in the know. Tanna (40) will be handling the entire spectrum of buyouts, control transactions, growth equity and even impact investments across sectors at the American private equity major. He will be reporting to Gaurav Trehan, India country head for KKR.
The two firms were informed of the development on Monday.
Tanna, a Wharton alumni, was a former investment banker with Merrill Lynch and Deutsche Bank in New York and London before joining TPG in 2010 where he invested for the firm’s growth ( $14.5 billion AUM), technology ( $5.1 billion AUM) and even Impact funds ( $5 billion AUM).
Having been involved in over a dozen transactions, Tanna’s early deals for TPG includes Sutures, Dodla Dairy, Landmark Auto among others, but became known for consumer tech winners like Lenskart which resulted in a 4x dollar return in as many years. Nykaa also gave the firm an 8x return in 4 years. Some of his other investments include BookMyShow, Dream 11, First Cry, Livspace and ExpressBees.
KKR is bullish on investment prospects in India amid a volatile global macroeconomic environment and is looking to make large bets on businesses in sectors such as healthcare, consumer and technology, said its co-CEO Joseph Y Bae in a recent interaction.
KKR, which began investing in the country in 2006, has so far pumped over $10 billion into India. Some of its biggest bets include Reliance Jio Infocomm, Reliance Retail, Vini Cosmetics, Avendus, and JB Chemicals, Lenskart, 5 Star Finance among others.
“India is a very, very important part, not just of our Asia strategy, but also our global strategy. It has incredible fundamental growth,” said Bae. It has also invested a little over $2 billion in Indian infrastructure. That vertical will continue to be led by Hardik Shah, who joined the firm from Brookfield.
Co-CEO Bae had highlighted that KKR’s future investments in India will focus on sectors such as healthcare services and pharma, consumer sector businesses, and technology adoption.
While the PE firm is bullish on various parts of its business, it is also rethinking some of them such as credit and real estate, which the investor was doing through its own balance sheet previously.
KKR merged its corporate lending book with Incred Financial Services last year and is now evaluating options for its real estate lending platform.
On returns from India, Trehan commented that KKR has delivered returns to its investors in the high teens, consistently. It’s recent exits include a $2 billion position in Max Healthcare through the public markets in 10 months.
Other major exits recorded by KKR in India include a $1.3 billion sale of Gland Pharma to Fosun and a $1.2 billion sale of Alliance Tire to Yokohama Rubber.
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