LC Nueva Investment Partners, a partnership between Singapore’s Lighthouse Canton and Delhi-based Nueva Capital, has announced the launch of a new venture capital fund with a total target size of Rs 250 crore.
The new LC Nueva Momentum Fund will have a target size of Rs 150 crore with a greenshoe option of Rs 100 crore. The VC fund will focus on investing in 10-15 companies at the Series A and B stages of funding.
In 2023, this partnership had launched the LC Nueva Fund with a size of Rs 350 crore. According to a statement, the fund reported strong performances since its close, with over half the companies securing up rounds and reporting an approximately 57% CAGR in average revenue.
Now, the LC Nueva Momentum Fund will focus on three key areas: reinvesting into existing profitable portfolio companies, adjacent opportunities and the secondary market.
Sohil Chand, Founding Partner and CIO of LC Nueva Fund stated, “By actively pursuing secondary opportunities alongside leveraging the strong relationships established through our previous fund, we are poised to navigate the current market dynamics effectively.”
According to the VC firm, the secondary market in India has seen significant growth, driven by declining valuations and a pressing need for liquidity.
“Globally, secondary funds experienced the fastest growth of any asset class in 2023,” noted Sanket Sinha, Global Head of Asset Management at Lighthouse Canton.
“In India, we have recently seen a significant rise in portfolio secondaries, where funds acquire entire General Partner portfolios. These transactions were once limited, but as companies mature, the trend of institutional secondary investors purchasing private secondary portfolios is accelerating rapidly. In the first half of 2024 alone, secondary stake sales were prominent, making up 34% of transactions in the $50-500 million range for large deals,” he added.
Lighthouse Canton is a global asset and wealth management institution, overseeing assets surpassing $3.7 billion as of June 30, 2024. Nueva Capital, founded by Ashish and Sohil Chand, is an investment holding company managing $100 million across private and public markets.
