IFC may invest in Lighthouse’s latest India-focused PE vehicle

International Finance Corpo. (IFC), the private investment arm of the World Bank, has proposed to make equity investments of up to $50 million (about ₹375 crore) in Lighthouse AMC Pvt. Ltd’s mid-market private equity (PE) fund that is focused on growth transactions in India.  

The investment will be made in Lighthouse India Fund IV AIF, an India-focused vehicle that aims to raise $400 million in total commitments. IFC is also considering up to $40 million in potential co-investments in the fund’s portfolio companies, as per a regulatory disclosure by IFC.

“The fresh proceeds will support 10-12 growth stage mid-market companies across consumer, healthcare, specialty manufacturing and digital transformation with an average ticket size of $20-40 million,” the disclosure said. 

Mumbai-based Lighthouse, founded in 2006 by Sachin Bhartiya, Sean Sovak and Mukund Krishnaswami, marked the final close of its third fund at ₹1,750 crore, including a pool of capital for co-investment opportunities, in May 2019.

Lighthouse focuses on consumer-centric sectors such as healthcare, food and beverages, personal care, building materials, consumer durables, logistics and financial services.

In July, the PE firm planned its biggest fundraising that is targeting fast-growing consumer brands in the country. The latest fund will be Lighthouse’s largest so far, after its $100 million fundraise in 2009, followed by $135 million and $230 million in two funds in 2015 and 2019, respectively.

Lighthouse has raised more than $450 million and has invested in Indian companies, including popular online beauty retailer Nykaa and ethnic apparel and IPO-bound ethnic retailer Fabindia. 

In April, Lighthouse Funds logged out partially from listed laminate maker Stylam Industries Ltd.

Lighthouse had invested in a publicly listed healthcare company last year. Its portfolio firms from its funds include cosmetics and beauty brand Kama Ayurveda, snack brand Bikaji, mattress maker Duroflex, footwear brand Aqualite and business-to-business (B2B) online marketplace for medical supplies Medikabazaar.