SUMMARY
Through the latest fund, Lighthouse Canton seeks to capitalise on the rapid pace of innovation and the transformative power of innovation-driven market opportunities
Designed as an absolute return fund, it adopts an evidence-based strategy for investing in scalable and profitable companies, focusing on risk reduction through diversification across different geographies and sectors
It invests predominantly in public equities and will also focus on investments beyond the technology sector
Singapore-based global investment firm Lighthouse Canton has launched a new fund to back global companies seeking growth in the GenAI domain.
The investment vehicle, the LC GenInnov Global Innovation Fund, is led by Nilesh Jasani, an industry veteran with market experience of three decades and a subject matter expert on GenAI.
He is the founder of GenAI-focused investment firm GenInnov Funds and previously led the Asian business of Jefferies before stepping down as vice chairman of the American investment bank.
Lighthouse Canton offers asset and wealth management solutions to a diverse client base, including family offices, institutional investors and UHNWIs across India, SEA and the Middle East.
Through the latest fund, Lighthouse Canton seeks to capitalise on the rapid pace of innovation and the transformative power of innovation-driven market opportunities.
Drawing parallels from the progress of the internet, Lighthouse Canton sees unprecedented wealth creation in the downstream applications of innovation across sectors such as biotech and healthcare, robotics, home automation, consumer wearables and cleantech, among other emerging themes.
Designed as an absolute return fund, it adopts an evidence-based strategy for investing in scalable and profitable companies, focusing on risk reduction through diversification across different geographies and sectors.
The fund employs a distinctive four-bucket investment approach, categorising investments according to innovation, scalability, market expansion potential, profitability, and valuation. By focusing on diversification, profitability, and valuation, it aims to strike a harmonious balance between innovative investments and financial stability.
According to Jasani, the world is now moving beyond the foundational elements of computing and large language models, to harness AI’s true potential through its application in real-world scenarios. It’s in the downstream use cases – beyond chatbots, image editing and text formation – where the transformative power of AI coming to life is being seen.
“Our fund is poised to capitalise on these advancements, aiming to surpass transient trends by investing in groundbreaking innovations that promise enduring impact and value”, he said.
Given the rapid pace of disruption, the fund follows an actively managed strategy. It invests predominantly in public equities and will also focus on investments beyond the technology sector.
Lighthouse Canton further believes that the real beneficiaries of Gen-AI advancements will be found in application areas beyond the tech sector, rather than in the initial creation of AI technologies.
It will also look to leverage private innovation investments, given the potential of the investments to catalyze network effects and drive sustained growth over multiple periods.
It also departs from the ‘Spray and Pray’ approach to focus on identifying compounders based on fundamental investment principles, aligning with long-term growth themes such as innovation.
The fund is available to professional and accredited investors seeking differentiated growth opportunities across all market cycles, focusing on capital preservation and attractive risk-adjusted returns.
Founded in 2014, Lighthouse Canton currently has $3 Bn assets under management. It operates two main business verticals – asset management and wealth management – each with its own set of differentiated product offerings and unique revenue model.
The investment institution competes with global giants like Asia Partners, UBS Asset Management and Dymon Asia, to name a few.
Earlier Lighthouse Canton launched three public market funds – LC SageOne Select Stock Portfolio Fund, LC Beacon Global Fund, LC Global Select SP Fund
It is also running four private market funds – LC Supply Chain Credit Fund, Neovantage Innovation Parks, LC Nueva AIF, LC Venture Debt Fund as well. The fund invests in startups with annual revenue exceeding $5 Mn, EBITDA-level profitability and a minimum of $8-10 Mn in funding from reputed VCs. It had already backed 13 startups, such as Rentomojo and LoanTap.
