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Global investment institution Lighthouse Canton has announced the first close of its venture debt fund, a Category – II AIF, at INR 155.4 crore. The Fund, which has a capacity of INR 550 crore and a Greenshoe option of additional INR 550 crore, is part of Lighthouse Canton’s regional venture debt strategy. The Fund has seen participation from onshore and offshore institutions and family offices. The Fund shall provide debt capital to technology-enabled companies which are part of the Indian startup ecosystem.
“As the pace of venture capital activity continues to grow, it is logical that we would see a rise in venture debt demand. In more mature venture ecosystems such as the US and Europe, venture debt has risen to 15-20% of the total VC funding, whereas this proportion is less than 2% in India. Given the growth of venture ecosystem in India, we see tremendous opportunity for venture debt, and we expect the size of this market to grow 3-4 times in the next five years,” said Sanket Sinha, global head of asset management, Lighthouse Canton.
Headquartered in Singapore, Lighthouse Canton is a global investment institution with wealth and asset management capabilities. The firm has over 100 experienced professionals in Singapore, Dubai, and India, and it oversees over $3 billion worth of assets under management and advisory, as of 30th Sep 2022. LC Venture Debt fund expects to deploy the capital in the next two years across 35-40 companies, claimed by the company in a statement.
“Given that our venture debt strategy is regional, we can also support a startup with aspirations to expand out of the domestic market. Our presence in other markets uniquely positions us to partner with companies with international expansion plans and help them with their financing needs. Our investors and partners appreciate the value we bring to the ecosystem, and we are witnessing healthy demand for this asset class,” said Ankit Agrawal, Lighthouse Canton’s director for venture debt.
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