A Singapore-Korean investment partnership has announced plans to co-invest $20 million in the Indian private debt market, noting the country’s thriving market and substantial exit potential in a number of industries, including consumer and financial services.

A memorandum of understanding for co-investing in Indian companies has been signed by NH Absolute Return Partners, an asset management company based in Singapore and owned by NH Investment & Securities, one of Korea’s largest securities firms, and Lighthouse Canton, a global wealth and asset management investment institution with its headquarters in Singapore.

As per the terms of the Memorandum of Understanding, Lighthouse Canton and NHARP will investigate prospects for “increased cooperation throughout the Indian private markets arena.”

“Thanks to favourable demographics, development-focused policies, and expanding infrastructure, India’s economy is at a turning point. As India moves toward being the world’s third-largest economy over the next three to four years, the mid-market ecosystem there is expected to profit from the general expansion, according to Sanket Sinha, director of Lighthouse Canton’s asset management division and board member.

“We are excited to join hands with NH Group to support the growth of companies operating in small finance, fintech, B2B commerce, and agricultural finance, among others, in India and South-East Asia,” Sinha stated in a press statement on Wednesday.

“NH’s experience in these areas will be an asset for the companies we collectively invest in,” he stated.

“From the standpoint of investors, India is a thriving market offering substantial exit potential in a number of industries, including consumer, B2B, and financial services SaaS. roughly 250 exit deals, including M&As and IPOs, will realise roughly $30 billion in the PE and VC markets in 2023, according to Kijung Kwon, NH Absolute Return Partners’ managing director and chief information officer.

“Furthermore, we plan to set our focal points more closely on identifying investment opportunities and achieving exits in India’s promising companies,” he continued.

According to Hongwook Warren Kim, CEO of NH Investment & Securities’ Global Business Division, “India is a key market where not only the venture ecosystem but also the entire capital market is developing dynamically due to high growth.”

“This Memorandum of Understanding provides us with an opportunity to gain a deeper understanding of the Indian market. As one of the top participants in the Korean capital market, we intend to work with Lighthouse Canton to develop joint ventures going forward.”

India is a primary investment market for Lighthouse Canton, which has offices in Singapore, Dubai, New Delhi, Mumbai, Hyderabad, and Bengaluru. The company manages funds with an emphasis on India and South-East Asia on a variety of private market strategies, such as commercial real estate, venture debt, and equity.

According to the release, NH has been actively investing in the region’s strategically important sectors. It hopes to take advantage of the infrastructure of the National Agricultural Cooperative Federation Financial Group as well as the resources of its parent company, NH Investment & Securities, to explore more opportunities throughout Southeast Asia and India.