IFC TO INVEST UP TO $45 MN IN LIGHTHOUSE’S THIRD PE FUND

MUMBAI: India-focused private equity (PE) firm Lighthouse Funds on Monday said it has received a commitment of $20 million for its third PE fund from International Finance Corp. (IFC), the private investment arm of the World Bank group.

IFC AMC, IFC’S asset management unit, is also considering a parallel investment of up to $25 million in the fund which would take the investor’s total commitment to Lighthouse India Fund III to $45 million, the PE firm said. Lighthouse is looking to raise $200 million for the fund.

“We have received close to two-thirds commitment for the fund and we hope to achieve the final close of the fund by March. So far, the fund has been raised entirely from overseas investors, including institutional investors from the US and Europe. Almost all the investors in our second have made a commitment to the new fund,” said Sachin Bhartiya, partner at Lighthouse Funds.

Lighthouse raised its first fund of $100 million in 2009, followed by a second fund with a corpus of $135 million. The company has invested in 17 firms since then.

The latest fund will continue the firm’s strategy of investing in consumer-focused businesses.

Lighthouse’s latest fund will look to make investments of $10-20 million, focusing on minority, growth capital investments.

Bhartiya expects the third fund to make its maiden investment next quarter. “We are in talks with a healthcare company, a building materials company and an FMCG (fast-moving consumer goods) company.”