Singapore’s Lighthouse Canton to Invest $1.5bn in India, What Investors Should Watch

Mumbai, 28 October 2025: Singapore-based asset manager Lighthouse Canton plans to deploy more than $1.5 billion (≈₹13,000 crore) into India over the next three–four years, targeting private credit and real estate as its primary plays, senior executives told Reuters. The firm said it expects to put in over $1 billion into private credit and at least $500 million into real estate.

The announcement comes as foreign capital continues to search for yield and growth in India’s expanding alternatives market, but the question for investors is straightforward: Will this wave of targeted capital meaningfully deepen private credit and real-asset markets, or merely chase scarce mid-market opportunities at frothy prices?

Why India, and why now?

Lighthouse Canton investment points to two structural dynamics: a rapidly growing pool of mid-market companies needing non-bank finance, and a real-estate sector (logistics, life-sciences, premium offices) hungry for institutional capital. The firm already says it has deployed about $350 million in Indian alternatives and manages roughly 1.2 million sq ft of life-sciences real estate in Hyderabad, signalling both experience and local footprint.

Macro and market drivers also favour the timing. India’s private-credit market is still nascent, estimated at $25–30 billion of assets as of March 2025, leaving space for new managers to capture market share and to provide financing that banks are often reluctant to offer. Global investors have accounted for a large slice of recent inflows into this asset class.

How will Lighthouse deploy the capital?

Executives said the plan is two-pronged:

(a) Private credit, including growth debt, acquisition financing, turnaround situations and cross-border deals for mid-sized firms (typical ticket sizes $10–50 million)

(b) Real estate, focused on markets such as Bengaluru and Mumbai and asset classes like life sciences and institutional logistics.

Lighthouse Canton plans to launch a new India-focused private-credit fund by January 2026, aiming to raise ₹10–15 billion (~$114–171m) as a first close.

The firm runs an India & Southeast Asia growth-debt fund and an early-stage venture equity vehicle already and says it has a seven-office presence across India to source deals and manage assets. For investors, that mix implies attention to yield (credit coupons), capital appreciation (real estate leasing/value-add), and fee income from fund management.

What this means for investors and market structure

1. Deeper private-credit supply: Institutional investment can reduce the cost of capital for mid-market firms and broaden financing options (acquisition financing, recapitalisations), potentially supporting M&A activity and corporate restructuring.
   

2. Real-estate institutionalisation: More capital for life-sciences labs, logistics and grade-A offices could accelerate leasing and professional management, improving yields and exit options for developers.
   

3. Price discovery and competition: New funds increase competition for attractive originations, which can compress yields for private-credit investors and push real-asset buyers to higher entry multiples. Investors should watch spread compression closely.
   

What are the key risks?

• Competition and yield compression. As more global managers hunt similar mid-market credits, underwriting discipline will matter; chasing scale can erode returns.
  

• Macroeconomic stress/rate volatility. Private credit is sensitive to interest-rate moves and corporate stress; higher defaults in a recession would quickly reveal credit underwriting gaps.
  

• Execution risk in real estate. Project delays, construction cost inflation, and local regulatory hurdles can hurt returns on development or repositioning plays.
  

• Fundraising and exit windows. Successful deployment depends on timely capital raises, anchor support and viable exit channels (sales, securitisations, IPOs).
  

What should investors and allocators watch next?

• Fundraise traction: Size and speed of the new private-credit fund’s close (₹10–15bn target) will indicate appetite and anchor commitments.

• Deal cadence and pricing: Watch reported deal sizes, coupon levels and covenant strength on early transactions; these set the tone for expected net returns.

• Real-estate acquisitions: Locations, price per sq ft and expected yields for the Bengaluru/Mumbai pipeline will show whether Lighthouse buys core or value-add assets.

• Regulatory and tax change: Any shifts in India’s regulatory treatment of foreign alternatives or tax rules can affect net yields and repatriation assumptions.

Conclusion

Lighthouse Canton’s pledge to invest over $1.5 billion into India, with more than $1 billion earmarked for private credit and $500 million for real estate, is a clear vote of confidence in the country’s alternatives market. It could deepen financing options for mid-market firms and professionalise more real-estate segments. The pivotal question for investors: Will this capital be deployed with disciplined underwriting to generate attractive risk-adjusted returns, or will rising competition and macro volatility squeeze yields and test manager skill?

References

Reuters
Business Standard