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.
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.