The fund is expected to target $125-150 million to invest in mid-sized Indian companies.
The US government's development finance institution 'Overseas Private Investment Corporation' (OPIC) has committed to invest $42 million in financing to support the India 2020 Fund II, a private equity fund sponsored by Lighthouse Funds, LLC that would focus on investments in the Indian consumer, healthcare, and education sectors.
In India’s growing economy, long-term growth capital to support middle market companies is still difficult to come by, and OPIC’s support to India 2020 Fund II would help address this challenge, while advancing entrepreneurship and job growth.
"These first board approvals of the 2015 fiscal year demonstrate OPIC’s broad approach to supporting private sector development in emerging markets,” said Elizabeth Littlefield, OPIC’s President and CEO.
“Whether supporting inclusive growth of South Asian business or addressing the acute need for energy access in Africa, OPIC is helping investors realize the investment opportunity inherent in sustainable economic development overseas," Littlefield added further.
The fund is expected to target $125-150 million (approximately Rs 781-938 crore) to invest in mid-sized Indian companies. Lighthouse Funds has raised its first dedicated fund in the year 2008. Till date, approximately $100 million corpus has been invested and at present, it has 10 portfolio investments.
Companies which received funds from Lighthouse, include Bangalore-based biscuit maker Unibic and Rajasthan-based snacks firm Bikaji Foods.