<article>India-focused private equity firm <a href="http://dealstreetasia.com/tag/lighthouse" target="_blank" rel="noopener">Lighthouse Funds</a> has added a greenshoe option of $40 million to its third fund.</article>

India-focused private equity firm <a href="http://dealstreetasia.com/tag/lighthouse" target="_blank" rel="noopener">Lighthouse Funds</a> has added a greenshoe option of $40 million to its third fund.
The PE firm had initially set a target of $200 million for its fund, which would have taken its total assets under management (AUM) to $500 million.
According to a recent SEC filing, Lighthouse has raised $181.24 million so far for the fund, with another $58.76 million left to be raised, taking the total target to $240 million.
&#8220;Our  target is $200 million for the fund, and we are getting close to that and we just wanted to give ourselves the extra headroom in case we wanted to raise more capital. It is more of a procedural filing. We did raise the cap to $240 million but our target remains $200 million,&#8221; Mukund Krishnaswami, the founding partner of Lighthouse Funds, told DEALSTREETASIA.
In March, the Mumbai-based investor had marked the first institutional close of its third fund at $150 million after a preliminary first close at $80 million in November last year. Lighthouse plans to complete its fundraising process by January, as it legally has 90 days remaining to do so.
In a disclosure last year, International Finance Corporation (IFC) had proposed an investment of up to $20 million in Lighthouse&#8217;s third fund. IFC AMC was also considering a parallel investment of up to $25 million in the fund, it had said.
&#8220;Our target is still $200 million but this greenshoe gives us the ability to attract couple of global institutions if that comes across,” said Krishnaswami.
Founded by Mukund Krishnaswami and Sean Sovak, Lighthouse launched its first India-focused investment vehicle — India 2020, Limited — with a corpus of approximately $100 million in 2008. This was followed by the $135-million India 2020 Fund II, Limited in 2014.
The private equity firm has invested in over 20 companies so far, with the latest being a $22-million investment in mattress maker Duroflex. Prior to that, it had picked up a stake in online beauty products retailer Nykaa for around $16 million in September.
The firm’s current and past investments also include Bikaji Foods, Cera Sanitaryware, Dhanuka Agritech, FabIndia, Kama Ayurveda and XSEED Education.
Providing the reason for introducing the $40 million greenshoe option Krishnaswami said, “A big part of it is that it (the fund) continues to attract investor interest. We’ve completed three investments in this fund and are looking at one more in the next couple of weeks. Those four investments together will be about 40 per cent of our fund.&#8221;
&#8220;As investors start looking at the fund, it’s no longer a blind pool, there are real assets that they are looking at now. That has a bonus in terms of fund raising momentum, so we wanted to give ourselves that flexibility,&#8221; he added.
Lighthouse typically invests $5-25 million in each company. The firm is bullish on consumer-centric sectors such as healthcare, food and beverages, personal care, building materials, consumer durables and logistics.
Other mid-market private investors currently raising funds include Amicus Capital, which is seeking $200 million for its next fund. Private equity fund Zephyr Peacock India recently raised around $33 million for its fourth fund focused on small and medium enterprises (SMEs). The firm is reportedly looking to raise $100-150 million for the fund.
Private equity firm Mandala Capital is also raising $300 million for its third fund to invest in companies in India and Southeast Asia.
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<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/ifc-proposes-20m-investment-in-lighthouses-third-fund-88200/" target="_blank" rel="noopener">India: IFC seeks to invest $20m in Lighthouse’s third fund</a>

The PE firm had initially set a target of $200 million for its fund, which would take its total assets under management (AUM) to $500 million.

India-focused PE Lighthouse expands target for third fund with $40m greenshoe option

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India-focused PE Lighthouse expands target for third fund with $40m greenshoe option

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