Singapore-based global investment institution Lighthouse Canton has announced the final closure of LC Nueva AIF, a scheme of Luminere Investment Trust, at Rs 350 crores.
The LC Nueva AIF has seen huge interest from various categories of investors, including large single-family offices and institutional clients like SIDBI.
Investing in early-stage startups
The Fund focuses on early-stage startups, typically contributing pre-Series A/Series A funding. It invests in startups with strong unit economics that have typically started generating revenue. The LC Nueva AIF adopts a sector-agnostic approach but with an inclination towards health-tech, consumer-tech, fintech, and education-tech businesses. It largely leaves out capital-intensive startups.
Fund size
The fund has a portfolio of around 30-35 companies. Interestingly, the initial size of the fund was set at Rs 300 crores, including the green shoe option.
However, The firm said the size of the fund had to be increased to Rs 350 crores to accommodate excess demand by family offices and institutional investors who wanted to participate in the fund and be a part of India’s rapidly evolving startup growth story.
“To date, India has produced more than 58,000 new businesses and the number is only growing. The robust growth in India’s startup ecosystem has been led by quite a few structural changes. Quite significantly, India has started outpacing China in some of the aspects related to start-ups, like the number of unicorns produced. India had 44 and 23 unicorns in 2021 and 2022 respectively as against 42 and 11 unicorns in China,” said Sumegh Bhatia, Chief Executive Officer and Managing Director- India at Lighthouse Canton.
“The Fund has plans to deploy about half of the corpus in building the portfolio while the other half would be utilized for the follow-on rounds for these companies. The objective of this deployment strategy is to maximise alfa for our LPs and the most efficient possible use of capital raised. It also helps us maintain our equity share in subsequent rounds of capital raised by our portfolio companies and not get diluted,” said Sohil Chand, Founding Partner and Chief Investment Officer, LC Nueva AIF.
In the last seven years, the AIF investments in India have seen a tenfold jump, with assets under administration at nearly Rs 7 lakh crore, the firm said in a statement.
Partnership with Nueva Capital
Lighthouse Canton has partnered with Nueva Capital to launch its maiden venture capital fund, LC Nueva, focused on pre-series A and series A startups in India. The fund was oversubscribed and applied for an additional Rs 50 crores for regulatory approvals.
Lighthouse Canton is a global investment institution with wealth and asset management capabilities. The firm said it has over 100 experienced professionals in Singapore, Dubai, and India and oversees over $3 billion worth of assets under management and advisory.
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