Singapore-based asset manager Lighthouse Canton has announced plans to invest over $1.5 billion into India over the next several years. The investment strategy will heavily focus on the country's rapidly expanding private credit and real estate sectors, signaling strong confidence in India's economic trajectory.
Senior executives confirmed the firm's commitment, outlining a multi-year plan that positions India as a central pillar of its global investment activities. This move reflects a broader trend of international capital flowing into India's alternative asset markets.
Key Takeaways
- Lighthouse Canton plans to invest more than $1.5 billion in India within three to four years.
- The investment will be split between private credit (over $1 billion) and real estate (over $500 million).
- The firm is launching a new India-focused private credit fund aiming to raise 10-15 billion rupees ($113.8 million - $170.7 million) by January 2026.
- This initiative builds on Lighthouse Canton's existing $350 million deployment in Indian alternative assets.
A Strategic Focus on Alternative Assets
Lighthouse Canton is significantly increasing its exposure to the Indian market, earmarking it as a top destination for its alternative investment strategies. The firm, which globally oversees $4 billion in assets, sees immense potential in India's non-traditional investment landscape.
Sanket Sinha, the managing director and CEO of Lighthouse's global asset management business, emphasized the country's growing importance for the company.
"For alternatives, private equity in real estate and private credit space, India will be one of our top plays. We see India becoming one of the largest investment destinations for Lighthouse Canton."
This substantial financial commitment is not the firm's first venture into the country. Lighthouse Canton has already invested over $350 million in Indian alternative assets. Its current operations include an India and Southeast Asia growth debt fund for mid-to-growth stage companies and an early-stage venture equity fund focused solely on India.
The Growing Allure of India's Private Credit Market
A significant portion of the new capital, over $1 billion, is allocated to private credit. This sector has seen remarkable growth as Indian companies seek flexible financing solutions that traditional banks often do not provide, such as funding for acquisitions, dividend recapitalization, and promoter financing.
What is Private Credit?
Private credit, also known as private debt, involves non-bank institutions lending money directly to companies. This form of financing offers more customized and flexible terms compared to traditional bank loans or public debt markets, making it attractive for companies in various growth stages.
To capitalize on this demand, Lighthouse Canton is preparing to launch a new, dedicated private credit fund. The goal is to raise between 10 billion and 15 billion rupees (approximately $113.8 million to $170.7 million) by January 2026.
Pranob Gupta, managing director for India alternatives at Lighthouse Canton, detailed the fund's specific targets.
"For the private credit fund, among other things, we will focus on companies with cross-border opportunities, acquisition financing, turnaround investing, and asset-light companies with good cash flow, like IT or SaaS companies."
India's Private Credit Landscape
The private credit market in India is still in its early stages but growing fast. As of March 2025, assets under management were estimated at $25 billion to $30 billion. This represents just 0.6% of India's GDP and 1.2% of total corporate lending, indicating substantial room for expansion.
Gupta also noted that the firm sees a particularly attractive opportunity in the 'mid-market' segment, focusing on deal sizes ranging from $10 million to $50 million. This niche is often underserved by larger global funds and traditional lenders, creating a sweet spot for specialized investors like Lighthouse Canton.
Expanding the Real Estate Footprint
Alongside its private credit ambitions, Lighthouse Canton is set to inject over $500 million into India's real estate market. The firm already has a significant presence in this sector, particularly in specialized life sciences-related properties.
Currently, the company manages a 1.2 million square-foot portfolio in the southern city of Hyderabad. This portfolio includes critical infrastructure like research and development laboratories, a niche but high-growth area within commercial real estate.
Future Expansion Plans
Building on its success in Hyderabad, the firm is actively exploring expansion opportunities in other major Indian metropolitan areas. According to Sinha, the company is targeting two of India's most dynamic commercial hubs for its next phase of growth.
- Bengaluru: Known as India's Silicon Valley, it is a prime location for tech and life sciences real estate.
- Mumbai: As the country's financial capital, it offers diverse opportunities in commercial and specialized real estate.
The focus on these cities aligns with the firm's strategy of investing in high-demand, high-growth markets that support India's evolving economy. The planned expansion is expected to further diversify Lighthouse Canton's real estate holdings and strengthen its position as a key institutional investor in the country.
The Bigger Picture: Global Capital Eyes India
Lighthouse Canton's investment is part of a larger trend. Global funds have become major players in India's financial markets, especially in alternative assets. Recent reports indicate that international investors have accounted for nearly 55% of the capital inflows into India's private credit market over the last three years.
This influx of foreign capital is driven by India's strong economic fundamentals, a growing middle class, and a dynamic corporate sector hungry for growth capital. As traditional lending channels face constraints, alternative asset managers are stepping in to fill the gap, providing crucial funding that fuels innovation and expansion across various industries.
With seven offices already operating across India, Lighthouse Canton is well-positioned to execute its ambitious investment plan. The firm's deep local presence combined with its global expertise allows it to identify and act on unique opportunities in both the private credit and real estate domains, solidifying India's role as a critical market for international investors.
