MUSE Capital Advisors, Limited (“Investment Advisor”), will be engaged by the Fund to serve as its investment advisor, in accordance with the Mauritius Securities Act 2005. Lighthouse Advisors (India) Private Limited (“Lighthouse” or the “Sub-advisor”), will provide non-binding investment advisory services to the Investment Advisor. 

The Fund’s sponsor is Lighthouse Funds LLC (“Sponsor”), which is wholly owned by founding partners of Lighthouse – Mukund Krishnaswami and William Sean Sovak and their affiliates.

The Investment Advisor also advises India 2020, Limited (“Fund I”), a 2008 vintage US$92.7 million fund; and India 2020 Fund II Limited (“Fund II”), a 2013 vintage US$134 million fund.

The Fund is seeking to raise US$200 million in capital commitments. IFC proposes an equity investment of up to US$20 million (not to exceed 20% of total commitments) in the Fund. IFC AMC is also considering a parallel investment of up to US$25 million.

The Fund is a public company limited by shares, with limited life based in Mauritius and will focus on investments in companies through common equity, preference shares and convertible investments in businesses organized in India. The Fund’s Sub-advisor is based out of Mumbai, India.

(i) Private Sector Development: Access to long-term equity capital is difficult for unlisted companies. The Fund would provide scarce and patient capital as well as expertise and guidance to support value creation. Lighthouse's value-add to investees, through Fund I and Fund II, is visible through the robust growth in financial metrics, high job creation, and strengthening of the underlying business models.

(ii) Financial inclusion and sustainability: Access to employment opportunities for individuals, access to markets for small businesses, and operational, financial and E&S improvement of local businesses.

(iii) Market development: Support of the India PE industry at a time when investor support has waned, through support of a local PE firm with long-term potential, operating in a segment of the market that has very few providers of growth capital.

1. Demonstration Effect at Critical Inflection Point/ Mobilization: IFC is one of India's most influential private equity ("PE") fund investors, with US$707 million committed to 34 funds since 2000. Recently, fund raising for India's PE market has been difficult - the sector is at a critical inflection point, and investors look to experienced investors with global reach such as IFC to assess the market opportunity. An IFC-backed manager that delivers strong performance will propel a valuable demonstration effect to re-attract investor capital to the market.
2. Co-Investments/ Ability to Provide Network Access and Additional Financing: IFC is the only investor in Indian funds with the ability to provide the unique combination of (i) funding for investees through co-investment equity, follow-on equity as well as debt/ mezzanine financing; and (ii) local knowledge and global expertise for scaling up investees into national leaders and regional players.
3. Access to capital: Backing a fund in a segment that is under-capitalized would address the critical gap in access to finance for mid-sized companies and help companies in the segment to scale-up.

In accordance with IFC's Access to Information Policy, IFC will periodically disclose the names, locations and sectors of sub-projects that have been supported by IFC investments through private equity funds, subject to regulatory constraints and market sensitivities. The sub-project(s) listed below reflect(s) the status of the portfolio as of January 1, 2025.