OPIC commits $42m to Lighthouse India

The US development finance institution is backing the firm’s second fund, targeting up to $150m

The Overseas Private Investment Corporation (OPIC) has approved its investment projects for the quarter, which include a $42 million commitment to the India 2020 Fund II, an India-focused growth equity fund managed by Lighthouse Funds, according to a statement.

The fund, which is targeting $125 million, but could raise as much as $150 million, made a first close on $60 million in August last year, having secured re-ups from all its “major and institutional” investors from Fund I, Private Equity International reported earlier.

Lighthouse’s $100 million debut vehicle has now been fully invested across 11 portfolio companies, as well as making a series of exits.

The new vehicle, which has also received a $25 million commitment from the International Finance Corporation, will focus on investments in the Indian consumer, healthcare and education sectors.

While Lighthouse is headquartered in New York, the firm has an office in Mumbai and invests in the country’s low- to mid-market opportunities, focusing on minority positions in deals worth $5 million to $15 million.

OPIC has invested in the fund to help provide long-term growth capital to an under-served mid-market in India, the institution said.

It has also approved up to $233 million in financing to support the construction and operation of a 100 megawatt wind power project in South Kenya. This source of renewable power would make a significant contribution to the installed energy capacity in Kenya, where up to 80 percent of the population currently lacks electricity access, according to the statement.

“These first board approvals of the 2015 fiscal year demonstrate OPIC’s broad approach to supporting private sector development in emerging markets,” OPIC president and chief executive Elizabeth Littlefield said in a statement.

“Whether supporting inclusive growth of South Asian business or addressing the acute need for energy access in Africa, OPIC is helping investors realise the investment opportunity inherent in sustainable economic development overseas.”