Singapore-Korean partnership to co-invest $20M in Indian private debt space

A Singapore-Korean investment partnership will co-invest $20 million in the Indian private debt space, citing India's vibrant market with significant exit opportunities across various sectors such as financial service and consumer.

Lighthouse Canton, a Singapore-headquartered global wealth and asset management investment institution, and NH Absolute Return Partners (NHARP), a Singapore-based asset management company of one of Korea's largest securities firms, NH Investment & Securities, have signed a memorandum of understanding (MOU) for co-investing in Indian companies.

Under the MoU terms, Lighthouse Canton and NHARP will also explore opportunities for "greater collaboration across the Indian private markets space".

"India's economy is at an inflection point, supported by favourable demographics, development-oriented policies, and infrastructural growth. India's mid-market ecosystem is poised to benefit from the overall growth as India marches towards becoming the third-largest economy over the next 3-4 years," said Sanket Sinha, Director on the Board of Lighthouse Canton and head of its Asset Management business.

"We are excited to join hands with NH Group to support the growth of companies operating in small finance, fintech, B2B commerce, and agricultural finance, among others, in India and Southeast Asia," Sinha said in a release on Wednesday.

"NH's experience in these areas will be an asset for the companies we collectively invest in," he added.

"From an investors' perspective, India is a vibrant market with significant exit opportunities across various sectors such as financial service, consumer, and B2B SaaS. In 2023, approximately $30 billion is realized through about 250 exit transactions in PE and VC markets, including IPOs and M&As," said Kijung Kwon, Managing Director and CIO of NH Absolute Return Partners.

"Furthermore, we plan to set our focal points more closely on identifying investment opportunities and achieving exits in India's promising companies," he elaborated.

"India is a key market where not only the venture ecosystem but also the entire capital market is developing dynamically due to high growth," observed Hongwook Warren Kim, CEO of NH Investment & Securities' Global Business Division.

"The signing of this MoU serves as an opportunity to understand the Indian market for us better. From now on, as one of Korea's leading capital market players, we plan to create synergies in collaboration with Lighthouse Canton."

For Lighthouse Canton, which has offices in Singapore, Dubai, New Delhi, Mumbai, Hyderabad, and Bengaluru, India is a core investment market, and the firm manages India and Southeast Asia-focused funds on various private market strategies, including commercial real estate, venture equity and venture debt.

NH has been actively investing in the region in sectors which are of strategic interest and hopes to leverage the resources of its parent company, NH Investment & Securities, and the infrastructure of the National Agricultural Cooperative Federation Financial Group to explore further opportunities across India and Southeast Asia, according to the release.