IFC to back Lighthouse's new $125M SME fund

Thu Jan 10, 2013 3:38pm IST

Related Topics

IFC, the private sector investment arm of the World Bank, is backing Lighthouse's new $125 million India-focused SME fund with commitment of around $25 million of the corpus. Christened India 2020 Fund II, it will offer growth equity of $5-15 million per investment for a significant minority stake.

The fund aims to invest in sectors which benefit from and promote consumer demand & purchasing power including healthcare, education, rural consumption and agribusiness.

MUSE Capital Advisors Ltd will act as the investment manager of the fund.

The new fund is a successor to India 2020 Fund I - a 2008 vintage fund of $100 million that had an estimated exit gross IRR of 30 per cent.

From the first fund, Lighthouse has invested in portfolio companies such as IDiscoveri Education, Innoventive Industries, Imperial Spirits, Dhanuka Agritech, Unibic India, Shaily Engineering Plastics, Words Infocom, Concept Hospitality and Miles Software.

Last year, it exited its investment in Mumbai-based Radiant Hospitality Services Pvt Ltd when the UK-based OCS Group acquired the firm for a total consideration of Rs 30 crore.

Compared to the first fund, healthcare appears to be the additional focus area for investments out of the second fund.

Set up in the US in 2001 by Mukund Krishnaswamy (former executive of Lehman Brothers' private equity team) and W Sean Sovak, Lighthouse has been investing in India since 2006. The mid-market-focused private equity fund has Boris Siperstein and Sachin Bhartiya as partners, and also roped in Brian Larcombe as an advisor. Larcombe is the former global CEO of UK-based and LSE-listed private equity fund 3i Group.

-- Copyright 2013 VCCircle.com. All rights reserved. This content/article is provided by Mosaic Media Ventures Private Limited and not by Reuters. All rights, including copyright, in this content/article provided by VCCircle.com are owned or controlled by Mosaic Media Ventures Private Limited. The content may not be copied, broadcast, downloaded and stored (in any medium), transmitted, adapted or changed in any way whatsoever without the prior written permission of Mosaic Media Ventures Private Limited.

FILED UNDER:

Reuters Showcase

Markets Weekahead

Markets Weekahead

Column - Caution advised in a trader’s market  Full Article 

Reuters Poll

Reuters Poll

RBI seen holding rates steady on Tuesday, minority of analysts expect cut  Full Article 

GDP Revised

GDP Revised

Economic growth revised up by almost 50 percent  Full Article 

Australian Open

Australian Open

Hingis wins Australian Open mixed doubles title with Paes   Full Article 

Houston's Daughter

Houston's Daughter

Bobbi Kristina Brown revived after found unresponsive in tub  Full Article 

India Art Fair

India Art Fair

Art fair turns India's capital into art hub.  Full Article 

Movie Review

Movie Review

"Rahasya" is an ode to Agatha Christie.  Full Article 

Review: Hawaizaada

Review: Hawaizaada

Movie Review: Hawaizaada  Full Article | Related Story 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage