Lighthouse Funds, India’s leading mid-market private equity (PE) firm focused on consumer and healthcare sectors, has closed its fourth investment vehicle at $475 million (Rs 4,000 crore), per an announcement.
Despite a challenging global environment, the firm said its fundraising process significantly exceeded its expectations with Lighthouse India Fund IV closing 30% above its initial target size.
This fund is the largest ever investment vehicle in Lighthouse’s 18-year history and is more than double the size of its predecessor.
Lighthouse Fund IV has garnered the support of existing and new investors as it looks to ramp up investments in the country with new opportunities coming up in the healthcare and consumer sectors.
While consumption is the primary driver of growth in India, led by a young and hyper-connected middle class, healthcare is playing out as a multi-decadal story, clocking a CAGR of over 15% year on year.
“As we continue to back the category leaders across consumer and healthcare sectors, we are excited to drive transformative growth and create lasting value across India’s dynamic economy,” said Sachin Bharitya, co-founder and partner at Lighthouse.
The PE firm has garnered as much as one-third of the capital for its fourth fund from domestic investors, with participation from leading Indian financial institutions, insurance companies, and family offices.
With this, its investor base now includes a diverse mix of long-term investors ranging from global development institutions to major financial institutions, from large insurance companies to leading asset managers and fund of funds, as well as large family offices and UHNIs.
Established in 2006, Lighthouse has so far invested in nearly 35 companies across India, with assets under management now exceeding $1.4 billion. Its marquee investments include leading Indian brands such as Bikaji Foods, Cera Sanitaryware, Fabindia, Kama Ayurveda, and Tynor Orthotics, among others.