Latest news with #LighthouseCanton
Entrepreneur
09-07-2025
- Business
- Entrepreneur
From Equity to Debt: Understanding the Shift from Venture Capital to Venture Debt in India's Startup Ecosystem
As capital access tightens amid rising interest rates, this financing shift serves as both protection and a catalyst for India's entrepreneurial landscape Opinions expressed by Entrepreneur contributors are their own. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. In India's evolving startup ecosystem, a significant paradigm shift is reshaping how entrepreneurs fuel their growth ambitions. Fol lowing the unprecedented 2021 funding frenzy that minted 44 unicorns, the eco system now pivots from tradi tional equity financing toward venture debt. This transition, gaining momentum through 2023-24, represents more than a temporary response to the ongoing "funding winter"; it signals a fundamental matu ration in how Indian startups approach capital structure. While Bengaluru, Delhi, and Mumbai lead in funding activities, this equity-to-debt evolution offers founders across regions the ability to extend runways and fund expansions without diluting ownership stakes. As capital access tightens amid rising interest rates, this financing shift serves as both protection and a catalyst for India's entrepreneurial landscape. Ankit Agrawal Executive Director of Asset Management, Venture Debt at Lighthouse Canton Venture Debt Venture debt is a special ized financing instrument for early-stage, high-growth startups with venture capital backing. Unlike traditional loans requiring tangible collateral, venture debt is typically secured against all current and fixed assets of the company, both present and future, including receivables, intellectual property, brand value, etc. This hybrid financ ing bridges conventional debt and equity funding, helping startups extend their runway without diluting ownership. Risk assessment focuses on growth trajectory and ability to secure future capital rather than current cash flows. The strategic advantages of venture debt over conventional equity financing present a three-fold value proposition for the modern entrepreneur. First, its non-dilutive nature preserves ownership integ rity and governance control, enabling founders to maintain decision-making autonomy without board interference or loss of equity value. Second, the financial benefits are substantial - founders gain access to capital with more economical long-term costs compared to equity, faster processing timelines, and the opportunity to establish valu able credit history for future financing options. Third, venture debt offers unparal leled operational flexibility, allowing companies to strate gically deploy capital across various business needs, from funding critical expansions to extending runway between equity rounds, thereby avoid ing potential down-rounds during market volatility. This preservation of equity is particularly crucial for mid to-growth-stage companies aiming to maximize share holder value, while its quick turnaround, often secured within 30 days compared to equity's three-month process, enables nimbler cash flow planning. Additionally, select venture debt funds in India provide the flexibility to allocate capital in USD, simplifying international ex pansion and enhancing global competitiveness. This sophis ticated financing approach is rapidly becoming an essential component in strategic toolkit of India's most forward-think ing founders. Market Analysis India's venture debt mar ket soared to USD1.2 billion in 2023, reflecting a 50 per cent year-over-year increase that underscores its shift from a niche financing instrument to mainstream capital source. By December 2024, overall venture debt funding in India had climbed to USD1.48 bil lion, a 10 per cent rise from 2023, marking the second consecutive year it surpassed the billion-dollar threshold as demand for non-dilutive financing gained widespread traction. This exceptional performance positions India's venture debt ecosystem for continued expansion, with projections suggesting market volume could reach USD1.8-2 bil lion by 2026. While the global venture debt market stands at approximately USD 20–25 billion, India is on a strong growth trajectory, with projections suggesting it could surpass USD 30 billion in 2024. Fintech leads sector adoption with USD 671 million in venture debt during 2023, reflecting mature business models and reliable revenue streams underscored by a 25 fold increase in digital lending volume over the past decade, reaching INR 2.9 trillion. Con sumer startups follow with increasing adoption rates, while electric vehicle compa nies, with 67 per cent relying on venture debt for over half their debt capital, represent a rapidly growing segment. While Delhi NCR leads in transaction volume, Banga lore's FinTech innovation and Chennai's EV manufacturing hubs are also key contribu tors, reflecting venture debt's widespread adoption across India's diverse startup ecosys tems. Venture debt has proven particularly valuable during market downturns, serving as a strategic financing buffer when equity capital becomes scarce. Key Drivers of the Shift The migration from equity to venture debt represents a re sponse to converging macro economic and strategic forces. While traditionally viewed as supplementary, venture debt has gained prominence as founders recognize its poten tial to optimize capital struc ture while navigating complex funding environments. Economic Environment - The persistent "funding win ter" has created equity access challenges forcing founders to explore alternatives beyond traditional venture capital. Current market conditions have generated valuation misalignments, with startups facing unfavorable terms or postponed growth initiatives. Venture debt emerges as a strategic lifeline, enabling companies to extend the runway without accepting valuation cuts. Market Maturity Factors - India's startup landscape exhibits increasing sophis tication, with venture debt benefiting from ecosystem maturation. Founder aware ness regarding optimized cap ital structures has grown, with experienced entrepreneurs recognizing the strategic advantages of incorporating debt components. Investor confidence in venture debt continues to strengthen, evi denced by specialized funds and increasing institutional allocation. Strategic Considerations - Founders' emphasis on own ership preservation represents a compelling driver behind venture debt adoption. By maintaining equity positions, entrepreneurs retain gover nance control and potential upside in future liquidity events. Venture debt offers accommodating repayment terms aligned to companies' growth trajectories rather than rigid schedules. Future Outlook The venture debt landscape in India stands poised for significant expansion reflect ing broader global trends. Industry evolution suggests a continued shift toward hybrid funding approaches that stra tegically combine equity and debt components to achieve optimal capital structures. Market participants can anticipate increased adoption across diverse sectors beyond traditional strongholds, with particular momentum in fintech, consumer startups, and sustainable technology ventures. The flexibility of select venture debt funds to offer capital in USD positions startups to seamlessly expand into international markets, amplifying their global com petitiveness.
Zawya
30-06-2025
- Business
- Zawya
Lighthouse Canton and Blue Sail Partners AG announce strategic partnership
Lighthouse Canton and Blue Sail Partners AG have announced a strategic cooperation, leveraging Lighthouse Canton's reach in Asia, India, the Middle East, and the UK, with Blue Sail Partners' European and Swiss expertise, to address the increasing need for sophisticated financial solutions and cross-border advisory services in these regions. The partnership will enable both companies to jointly deliver enhanced cross-border capital advisory services, which includes originating mandates in advisory, debt, fund, and capital raising transactions within their respective jurisdictions. Commenting on the partnership, Shilpi Chowdhary, Group CEO for Lighthouse Canton expressed, 'Our partnership with Blue Sail Partners AG represents a significant milestone in our global growth strategy. We're creating a powerful platform to bolster investment banking and capital advisory services for clients globally. This alliance will generate exceptional value and deliver more comprehensive solutions for our clients navigating increasingly complex cross-border opportunities.' The co-founders of Blue Sail Partners AG are seasoned industry veterans with prior leadership roles at Credit Suisse and UBS, who have played instrumental roles in developing platforms for ultra-high-net-worth clients and strengthening investment banking capabilities. For the past decade, Lighthouse Canton has demonstrated consistent growth, rising from a wealth and asset management company to a global investment institution. In August last year, the company bolstered its investment advisory capabilities, appointing Amrit Singh as Global Head of Key Clients and Institutions and Balaji Prassana as Executive Vice Chairman in Singapore, and Henrik Aslaksen as President, Lighthouse Canton International in London. The partnership further underscores Lighthouse Canton's ongoing expansion and strategic emphasis on building its capabilities as an integrated investment institution. About Lighthouse Canton Lighthouse Canton oversees over US$4 billion in assets under management and advisory (as of 31 December 2024), and employs more than 200 experienced professionals across its offices in Singapore, Dubai, India, and London. It provides integrated investment services to a diverse clientele, including ultra-high-net-worth individuals, families, family offices, private accredited investors, and institutional investors. For further information, contact: About Blue Sail Partners AG Blue Sail Partners, with its main office in Switzerland, works with entrepreneurs and families to complement their existing family offices and extend their capabilities. Its key areas of focus include credit advisory, capital raising, corporate finance, investment strategy and family office setup. Blue Sail Partners AG are located at 14 Baarerstrasse, 6300 Zug, Switzerland. For further information contact info@
Hans India
28-05-2025
- Business
- Hans India
India beats China for int'l family offices
New Delhi: Global family offices are most likely to increase their exposure in their investment portfolios to India and China over the next 12 months and India has scored far better on the list, according to the '2025 Global Family Office' report by UBS. More than a quarter (28 per cent) of family offices are planning to increase their exposure to India over the next 12 months while almost a fifth (18 per cent) are planning to increase exposure to China, the report mentioned, clearing indicating the robust macro-economic indicators and strong domestic growth in India. 'Middle Eastern family offices were the most likely to increase exposure to India,' the report further stated. Middle Eastern family offices, followed by those in Europe, were the most likely to increase exposure to India. The report captured the views of 317 UBS family office clients. The average net worth of participating families was $2.7 billion, with their family offices managing $1.1 billion each. 'Some of the most notable changes based on the latest survey include a shift toward developed market equities, with family offices likely seeking to access structural growth opportunities,' said the report. They also increased investments in private debt, possibly in search of extra yield, and some indicated that they are planning to increase developed market fixed income allocations, perhaps in a bid to diversify. 'Family offices are most likely to have clear investment strategies for healthcare and/or medicine, and electrification. But they're keen to understand the promise of a range of emerging technologies, seeing opportunities in both public and private markets,' the report explained. Within operations, they're most likely to use generative artificial intelligence (AI) for financial reporting/data visualisation and text analysis over the next five years. Another report last month said that in the Asia Pacific region, single-family offices have grown to 2,290 (surged by 28 per cent since 2019) and the region is expected to outpace North America moving forward, growing 40 per cent to reach 3,200 offices by 2030, adding that India is undergoing a similar evolution. A growing number of ultra-high-net-worth individuals and startup founders in the country are turning to institutional family office structures to manage wealth and succession planning, according to a white paper by Lighthouse Canton, a global investment institution.
India.com
27-05-2025
- Business
- India.com
India Pips China As Top Investment Country For Global Family Offices
New Delhi: Global family offices are most likely to increase their exposure in their investment portfolios to India and China over the next 12 months and India has scored far better on the list, according to the '2025 Global Family Office' report by UBS. More than a quarter (28 per cent) of family offices are planning to increase their exposure to India over the next 12 months while almost a fifth (18 per cent) are planning to increase exposure to China, the report mentioned, clearing indicating the robust macro-economic indicators and strong domestic growth in India. "Middle Eastern family offices were the most likely to increase exposure to India," the report further stated. Middle Eastern family offices, followed by those in Europe, were the most likely to increase exposure to India. The report captured the views of 317 UBS family office clients. The average net worth of participating families was $2.7 billion, with their family offices managing $1.1 billion each. "Some of the most notable changes based on the latest survey include a shift toward developed market equities, with family offices likely seeking to access structural growth opportunities," said the report. They also increased investments in private debt, possibly in search of extra yield, and some indicated that they are planning to increase developed market fixed income allocations, perhaps in a bid to diversify. "Family offices are most likely to have clear investment strategies for healthcare and/or medicine, and electrification. But they're keen to understand the promise of a range of emerging technologies, seeing opportunities in both public and private markets," the report explained. Within operations, they're most likely to use generative artificial intelligence (AI) for financial reporting/data visualisation and text analysis over the next five years. Another report last month said that in the Asia Pacific region, single-family offices have grown to 2,290 (surged by 28 per cent since 2019) and the region is expected to outpace North America moving forward, growing 40 per cent to reach 3,200 offices by 2030, adding that India is undergoing a similar evolution. A growing number of ultra-high-net-worth individuals and startup founders in the country are turning to institutional family office structures to manage wealth and succession planning, according to a white paper by Lighthouse Canton, a global investment institution. According to a recent industry report, the number of family offices in the country has grown nearly sevenfold over the past six years, rising from 45 in 2018 to close to 300 in 2024. The nation's booming startup ecosystem and generational wealth transfer are fuelling this growth, with many Indian families increasingly seeking institutional-grade investment strategies and governance solutions.
Economic Times
02-05-2025
- Business
- Economic Times
ETMarkets Smart Talk: Gold is more than a safe haven now - Pradeep Gupta on the rise of a new asset class leader
In this edition of ETMarkets Smart Talk, we catch up with Pradeep Gupta, Executive Director and India Head of Investment at Lighthouse Canton, to decode the shifting dynamics in global markets. Amid rising geopolitical tensions, volatile equity markets, and weakening confidence in traditional safe havens, gold has emerged not just as a hedge—but as a serious contender for alpha generation. Gupta shares why gold's role in portfolios is evolving, how macroeconomic uncertainties and central bank actions are fuelling its rise, and what investors should keep in mind while allocating to this asset. From equity allocations to FII flows and small-cap strategies, he also outlines the key factors driving investment decisions in FY26. Edited Excerpts – ADVERTISEMENT Q) Thanks for taking the time out. We are seeing some volatile swings in the markets, thanks to the back-and-forth from Trump on tariffs and now some geopolitical concerns amid tensions between India and Pakistan. How are you looking at all this?A) We are in the camp that these elevated tariffs may not really sustain for long, and a middle path via trade negotiations will eventually come into play. India has already started on a positive note on that front. We expect much of the concerns around tariffs to start settling in 2nd half of this year. As far as escalating tensions between India & Pak are considered, it remains a wait & watch mode for now. Markets will remain cautious & volatile in coming few days. Historically speaking, Indian markets have never experienced a correction of more than 2% during times of elevated tension with Pakistan except for 2001 parliament attack (got amplified due to correction in S&P 500).One will have to assess the balance between restraint & course of action. There are still many unknowns & overall sentiments will get anchored accordingly. ADVERTISEMENT While we don't envisage a prolonged impact for now, things can escalate very quickly & so will be the impact on overall markets.Q) It looks like we have entered a low-interest-rate environment. What should the asset allocation strategy be for an individual in the age bracket of 30–40 years?A) Investors within this age bucket should/ or rather are better placed with growth orientation in their overall portfolio construct. ADVERTISEMENT A 70%-20%-10% portfolio between Equity (comprising of global equities), Debt & Gold will be a prudent one to move ahead with. Q) What is your take on the results that have come out from India Inc., and what are your expectations for the next few quarters? ADVERTISEMENT A) While the earnings announcements are still underway, we were of the view that profit growth is likely to remain weak as we head into this quarter as earnings growth is likely to be between 4%-5% (excluding OMC's & Metal) thus providing a low base for the earnings as head into new fiscal. We expect Y-o-Y top line growth to be anywhere between 5%-6% range for ongoing quarter. Our expectations are that NIFTY earning is likely to grow between 12%-13% for the next 2 years. ADVERTISEMENT Q) How should one be looking at the small- and mid-cap space in FY26?A) Selectivity is the need of the hour. Given the widespread distortion (nearly 55% of the small cap universe is down by 50% or more), it eventually comes down to bottom up/ selective with ongoing corrections, small cap as a segment trades above historical average thus not imparting sizeable entry cushion. Market Cap-to-PAT ratio is still 50% above the historical clearly, there is a merit in buying into ongoing correction of this magnitude as suggested historically as well. We would advise to closely watch out for market liquidity while secularity and durability of earnings profile with quality centricity are the small cap idea pool one should look to take exposure driven stock rally is behind us while any material BETA offtake must be done gradually. Q) Where is the value in the market after the recent fall we have seen? A) Quite clearly, Large cap space given that valuations are back to historical average along with downside cushion that eventually comes into play till macroeconomic stability kicks is trading at a P/B multiple of 2.7x on a 1 year forward basis & a 1 year forward PE of 18x which is closer to its long-term averages. On an earnings yield to bond yield ratio, NIFTY has started to look far as the SMID segment is concerned, it's not a blanket call yet but select pockets have started to look a top-down perspective, staples & discretionary consumption part of the opportunity appears to be well poised given the expectations around normal monsoon, tax rebate, rural recovery 60% of our GDP is domestic oriented which is relatively shielded from tariff & remains resilient. In addition, current valuation comfort offers an attractive entry point. We continue to be positive on banks, domestic healthcare Pharma (minus US generics) as well. Q) Gold is back in the limelight as it hit the Rs 1 lakh mark in the physical market. Is it no longer just a safe haven but also a money-making machine? It has been outperforming equities for the past couple of years. A) That's precisely how Gold as an asset class has moved over the course of last few years. While its difficult to call out the top even though not so conventional valuation template like BSE Sensex -GOLD ratio stands at 1.06 times vis-à-vis its long-term average of us, gold remains one of the most well-placed hedging mechanisms against potential risk emanating from combination of stagflation, recession, debasement and US policy risks facing macro environment remains perfectly poised for both sustained & elevated levels of purchases by central banks (nearly 900 tonnes forecasted in 2025) coupled with a further expansion in investor holdings, particularly from ETFs and central banks, the combination of economic, trade, and US policy uncertainty along with unpredictable geopolitical distortions will continue to maintain gold buying. Current tailwind also gained momentum as confidence in other safe havens has been shaken to a large extent. Q) How are FIIs viewing Indian markets? We have seen some net buying in the past few sessions, but for the month, FIIs have pulled out more than Rs 13,000 crore from the cash segment of Indian equity markets. A) FII's behaviour thus far aren't quite reflective of overall India positioning as we speak. They are currently underweight India. Larger part of the excesses has been taken out from Indian are back to neutral territory & have started to look attractive. India now trades at a premium of 75% to the EM Index- not too far from long-term averages of 61%. NIFTY still holds an earnings projection of 12%-13% for the next 2 is off its peak with weakening USD. India continues to be in a better position as against China when it comes to tariff related turmoil. We expect the flow rotation from China to India to start taking place soon while overall intensity of FII selling is also likely to start coming down. Q) Have you made any changes to your strategy or portfolio to balance out the volatility arising from external factors such as tariffs or geopolitical concerns? A) Portfolio manoeuvring does become complex and tricky during times like this. However, it is important to remain rational and have a fair assessment of where one weren't comfortable with the valuations, cyclical slowdown, and the deteriorating earnings landscape in India. Consequently, we started pruning BETA exposure and, in parallel, ring-fenced client portfolios with a quality tilt by investing in defensive names with solid earnings material exposure to narrative stocks was exited where the fundamentals weren't quite in the magnitude of the correction India has witnessed and valuations for large caps returning to neutral territory, we have once again started building exposure for clients, albeit even more selectively for mid and small exposure with export orientation or sensitive to tariff related turmoil has been pruned gradually. It will be a while before the dust settles on the ongoing global turmoil due to the tariff are in the camp that these tariffs may not really sustain for long, and a middle path via trade negotiations will eventually come into are a whole lot of moving variables in play as we speak, thus warranting caution- but not necessarily panic. Quality centricity is the need of the hour, and we would look to judiciously deploy as the macroeconomic distortions start taking concrete shape. (Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
