A few existing investors will be able to take on more of the new fund, and new investors will also be a part of the new fund, according to the report noted.
We are getting good anticipation and believe that the performance of the portfolio and the results of funds II and III are positive tailwinds to these conversations: Lighthouse Partner
The $400 million fund is set to be closed at the end of this year.
Private equity (PE) firm Lighthouse Funds is reportedly in talks to raise $400 million for an investment fund that will focus on fast-growing consumer brands across the United States.
Lighthouse is currently in talks with potential investors for raising the fourth round of funds, founder partner Mukund Krishnaswami has told the news media agency Reuters.
We have seen a lot of interest, and we are hoping that the quality of the portfolio and the performances of the Funds II and III will be a positive force for these discussions. Krishnaswami was quoted as declaring.
But, he has did not mention the investors that the PE firm is in discussions with.
An individual who was aware of the latest developments informed the media outlet that the new fund was likely to close in the second quarter of this year. The source added that some existing investors will expand their participation in the fund, while investors who are new are also expected to join the fund.
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In addition, the report claimed that the proposed fund would be the biggest fundraise by Lighthouse across the nation.
The US-based Lighthouse Funds was incorporated in 2001. It began making investments in the Indian startup industry in the year 2008. It raised a 100 million fund to invest into India in 2009, and followed that with a $135 million fund in 2015. It closed its $230 million fund in 2019 primarily led by the World Bank’s International Finance Corp (IFC) and the Britain’s CDC Group and German investment group DEG and DEG, among others.
Lighthouse is home to a number of investments that are big within its portfolio, including an online platform for beauty and beauty products Nykaa and ethnic clothing brand FabIndia and footwear brand Aqualite and many more.
The PE firm usually invests between $15 to $30 million in the upcoming brands for consumers across various industries, such as clothing and skincare, for instance.
The fund is likely to be looking to invest in the area of consumer goods, which has experienced growth in recent. Thanks to an affluent middle-class with a growing use of the internet and a love of diversity, the market has grown exponentially in the past few years.
The fundraiser is happening at a time that large venture capital (VC) companies have been raising money to investment within the Indian startup industry.
Based in Bengaluru, ARTPARK has announced the $100 million venture fund that will invest in 10 growth-stage and early AI and robotics companies. LetsVenture’s co-founder Shanti Mohan has also launched an micro-VC fund called Propell in the month of March that is aiming to invest INR 50 crore in 30 startups that are in the early stages of tech-enabled startup.
The major VC and PE companies have also completed massive fundraises in the past year. In July, US-based Lightspeed has closed 500 million fund exclusively for India as well as that of the South-East Asia region.
This month, Sequoia Capital India has raised the largest $2.85 Billion investment in startup companies throughout India as well as Southeast Asia. Elevation Capital also raised $670 million in their Fund VII in April to be a focus for early- and growth-stage companies in India.
In all, Indian VC firms have thus far taken in over $12.3 Bn in the first quarter of 2022.
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