Lighthouse

Funds managed

Fund nameAsset ClassLicense
Lighthouse Fund IIIPE (growth stage)AIF Category 2
India 2020 Fund II
PE (growth stage)AIF Category 2
India 2020 Limited
(Fund I)
PE (growth stage)AIF Category 2

In 2008, we began advising India 2020, Limited (“Fund I”), an India-focused investment vehicle with a corpus of approximately USD 100 million. In 2014, we began advising a second investment vehicle, India 2020 Fund II, Limited (“Fund II”), which has a corpus of approximately USD 135 million. Both funds have raised capital from a diverse set of distinguished, international investors, who seek to provide long-term, patient capital and advice to the next generation of entrepreneurs in “New India”. Currently, the funds have invested in 20 such companies, and continue to aggressively seek out similar opportunities where they can invest between USD 5 million to USD 20 million.

About the AMC

  • Lighthouse was started by Sachin Bhartiya, Mukund Krishnaswami and Sean Sovak in 2005 to invest in new India and help next-generation entrepreneurs.
  • “With our roots originally in the United States, in the mid-2000s we turned our focus and efforts to the burgeoning entrepreneurial spirit here in India, and Lighthouse was born.”
  • Key staff
  • Ravi Chaturvedi (CEO council) – Ravi has several prominent, global leadership positions. He is a Former President of P&G and the Former Group Chief Executive of Jet Airways. He is a Consultant and Advisor to the President and Chief Learning Officer of the Nitto Denko Corporation, Osaka, Japan. Ravi’s area of expertise spans across the consumer and food industries. Ravi is a Senior Fellow, Management Department, Wharton School of Business and Lecturer, Organizational Dynamics Program, University of Pennsylvania; teaching “Globally Capable Leadership”.
  • P.K. Hariharan (CEO council) – Hari’sexperience spans nearly 40 years, first at Procter and Gamble (P&G) and then at Coty, leading some of the best known consumer and personal care brands in India and the region. He brings extensive experience in sales and distribution, marketing, and leadership training, with an expertise in the FMCG and Beauty industries to Lighthouse.Hari has received the “William Procter Sales Master” award, one of only 45 recipients globally. He has also received awards for leadership and coaching excellence at the Asia region and national level in P&G.
  • Mukund Krishnaswami- Partner and co-founder – Mukund is a Partner at Lighthouse, having co-founded the business in the mid-2000s. Prior to forming Lighthouse, he was an Associate at Lehman Brothers, Private Equity Division, and a Business Analyst in McKinsey & Co.’s Corporate Finance and Strategy Practice. He has worked extensively in all aspects of private equity including growth capital, LBOs, private transactions, recapitalizations, early to mid-stage venture capital investments and structured transactions, having over USD 1.5 billion of investment experience. Mukund is also a co-founder of the Linneman Letter, a leading economic research publication. Mukund currently serves on the Boards of XSEED Education, a learning system that aims to transform rote memorization into activity based education and Miles Software, a financial services software product company for brokerages, portfolio management solutions, wealth management and treasury functions.Mukund earned a dual, Bachelor of Science in Economics and Bachelor of Applied Science in Computer Science (summa cum laude) from the University of Pennsylvania and an MBA from The Wharton School, University of Pennsylvania.
  • Sean Sovak- Partner and co-founder – Sean is a Partner at Lighthouse, having co-founded the business in the mid-2000s. He is responsible for all aspects of sourcing, underwriting and managing portfolio investments, as well as team and organizational development. Previously, Sean was a Managing Director at W. P. Carey & Co., a NYSE-listed finance company, where he served in various capacities since 1994, lastly as Managing Director and Chief Acquisitions Officer, responsible for over $1.5 billion of financings to companies across industries. Sean serves as a Director to Kama Ayurveda, one of India’s leading luxury personal care brands, as well as Fabindia, India’s leading ethnic wear retailer and purveyor of other home and personal care products which celebrate India’s uniqueness. In his personal time, Sean is an Advisory Board Member to the Muktangan Education Resource Center, which provides world-class education solutions for students of low income households; he has also served on the Board of the New York Philharmonic and The American School of Bombay in past years.Sean earned a Bachelor of Science in Economics (summa cum laude) from The Wharton School, University of Pennsylvania.
  • Sachin Bhartiya-Partner and co-founder – Sachin is a Partner at Lighthouse. Prior to Lighthouse, he held senior positions at IL&FS, GE Capital and IDBI Ltd, where he led and managed more than USD 2.0 billion of transactions. At Lighthouse, Sachin leads the agri and consumer verticals and presently sits on the Boards of Bikaji Foods, one of the largest ethnic snack food companies in India; Dhanuka Agritech, the second largest agro-chemical company in India; and Indian Herbs, the largest herbal medicine and feed supplement company in India mainly focused on cattle and poultry. Sachin also on the Board of the Rotary Club of Mumbai, Nariman Point.Sachin earned a Bachelor of Commerce from the University of Calcutta and is a Chartered Accountant.

Investment Philosophy (for firm)

We partner with entrepreneurs who are experiencing exponential growth in the demand of their products or services, driven by the rapid increase in domestic consumer spend—across the socioeconomic spectrum.We seek out enterprises with offerings that are “relevant” today, and will soon become “more relevant” tomorrow; that is, offerings which will have increasing demand in the years ahead with a sustainable, competitive “moat”. The entrepreneurs we partner with, seek to provide their consumers with a product or service that is far beyond what might otherwise be available today—in India, and globally. In short, we uncover tomorrow’s blue-chip companies, today.

Value add

At Lighthouse, we understand that no one solution meets the needs of every growing company. Our aim is to customize both the capital and operational support given to each company for its unique situation at any given point in time.

Operationally, we work tirelessly side-by-side with entrepreneurs, yet always maintain a respectful, supportive approach. We ensure never to confuse involvement with interference.

We provide assistance in nearly all aspects of an organization’s development during its journey from entrepreneurial undertaking to world-class competitor, including:

  • Human Resources – Need Gap Analysis, Position Detailing, Candidate Identification and Selection, Compensation Plan Assessment and ESOP Structuring, General Policies and Best Practices.
  • Sales and Marketing – Market Opportunity Mapping (Domestic and Global), Sales Strategy and Execution, Brand Consultation and Communication, Media Planning, Digital Strategy, Extensive “Mystery Shopping”
  • Operations – Key Driver Analysis, Customer and Product Profitability Analysis, Supply Chain Management, Real Estate Identification, Capital Expenditure Analysis, Intellectual Property Guidance, Contract Negotiations, Acquisition Opportunity Assessment and Implementation, ERP Implementation, Global Best Practices for Corporate Governance
  • Finance – MIS Upgrade, Working Capital Analysis and Enhancement, Budget Preparation, Banking Relationships

Media

MMI interview

MMI interview with Sean Sovac, January 2019

Title: Lighthouse India Fund buys out TVS Shriram Growth Fund stake in Nykaa for Rs 113 crore., Source: zeebiz article https://www.zeebiz.com/india/news-lighthouse-india-fund-buys-out-tvs-shriram-growth-fund-stake-in-nykaa-for-rs-113-crore-62259

Lighthouse India Fund III has bought out stake held by TVS Shriram Growth Fund in Nykaa by investing Rs 113 crore. TVS Shriram was part of the Series B and Series C fund-raise by the Indian beauty retailer back in 2015 and 2016. Founded by Falguni Nayar, Nykaa had earlier this year raised Rs 160 crore through a combination of primary and secondary transactions with participation from existing investors.According to Sean Sovak, co-founder of Lighthouse, “What Falguni and team have created is nothing short of brilliant, completely disrupting the personal care market in India, by focusing on ease of access and superior customer experience. We are excited by the opportunity ahead for the company.”

Title: Lighthouse announces the closing of its third fund, Source: yourstory article, Date: 7th May 2019

https://yourstory.com/2019/05/lighthouse-india-third-equity-fund-startup-india

Mid-market private equity firm Lighthouse on Tuesday announced the closing of its third fund, Lighthouse India Fund III, worth $250 million (Rs 1,750 crore).

In a statement, the company said that including predecessor funds, it now advises and manages cumulative assets of nearly half a billion dollars.

Investors in Fund III include global institutions such as the International Finance Corporation (IFC), part of the World Bank Group, UK-based development finance institution CDC Group, and German development finance institution DEG. In addition to these, other investors include a slew of global endowments, pension funds and family offices.

Title: Avendus fund buys into Bikaji Foods as Lighthouse makes another partial exit, Lighthouse newsroom, Date: 27th May 2019

http://www.lhfunds.com/avendus-fund-buys-into-bikaji-foods-as-lighthouse-makes-another-partial-exit.html

Mid-market private equity firm Lighthouse Funds has struck a second partial exit from Bikaji Foods International Ltd, a year after first paring its stake in the snacks maker.

The Mumbai-based PE firm has sold a part of its stake to a new fund launched by financial services firm Avendus Capital in a secondary transaction.Lighthouse had picked up a 12.5% stake in the snacks maker for Rs 90 crore in April 2014. It partially exited Bikaji in May 2018. It sold a 2.5-3% stake during that transaction to IIFL Special Opportunities Fund and pocketed Rs 100 crore. After the transaction, it held a stake of around 10% in the firm.

Analyst questions

  • You said, “We uncover tomorrow’s blue-chip companies, today.” What factors- financial and qualitative – do you look at to conclude that this is my next blue chip company?
  • When it comes to providing operational support you said we do it respectfully,never to confuse involvement with interference.How open do you think entrepreneurs are today when it comes to seek operational know-how?
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