Mid-market PE firm Lighthouse hits first close for latest India fund
Photo Credit: Shah Junaid/VCCircle

Lighthouse Funds has marked the first close of its third India-dedicated fund at $150 million (Rs 974 crore), and is aiming to achieve the final close at $200 million by June, the firm said on Friday.

As and when it achieves the final close of its third fund, the PE firm will be managing $500 million in assets under management, said Lighthouse co-founder and partner Mukund Krishnaswami, in a media statement.

Lighthouse’s third fund has institutional backers, including International Finance Corporation (IFC), which said that it would consider committing up to $45 million.

The PE firm will continue to back entrepreneurs witnessing exponential growth, driven by the rapid increase in domestic consumer spends across the socioeconomic spectrum, the firm added.

Lighthouse typically invests $5-25 million in each company. It is bullish on consumer-centric sectors such as healthcare, food and beverages, personal care, building materials, consumer durables, logistics and financial services.

In 2017, it had invested Rs 51 crore in laminates maker Stylam Industries, Rs 44 crore in QSR chain Wow! Momo and Rs 76 crore in value retailer V2 Retail.

The US-based LighthouseFunds was set up in 2001 by Krishnaswamy, a former executive at Lehman Brothers’ private equity unit, and W Sean Sovak. It has been investing in India since 2006.

Sachin Bhartiya is a partner at the firm, while Brian Larcombe, the former global CEO of UK-based PE fund 3i Group, and Barbara Vogelstein, the former partner at Apax Partners & Co, are advisers.

Lighthouse Funds joins several other peers, which have been successful in raising mid-market PE funds or have marked milestones in the past one year. For instance, IDFC Alternatives is aiming to close its fourth consumer-focussed fund, while ICICI Venture has raised a $350 million fourth fund. IL&FS PE had also marked the final the close of its latest fund one year ago and first time fund manager Amicus has hit the first close of its maiden PE fund.

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