YAKUB ABDULRASHEED – Lighthouse Capital, an operator-led private equity firm, is seeking to raise $50 million to invest in high-growth mid-market businesses across South Africa and Kenya, with plans to combine financial investment with hands-on operational support to accelerate expansion.
Founded in 2025, the firm is targeting a first close before the end of 2026, with individual investments ranging from $5 million to $10 million across manufacturing, financial technology (fintech), agribusiness and technology.
The fund will target businesses with growth potential that require more than capital to scale, including stronger management systems, improved operational efficiency and better governance.
“Many high-potential businesses require more than capital to reach their next stage of growth,” said Nico Christoforou, Lighthouse Capital’s general partner and chief investment officer.
Targeting Four Sectors With $5m to $10m Investments
Headquartered across Johannesburg and Nairobi, Lighthouse Capital plans to deploy its proposed $50 million fund into selected mid-market businesses operating in four sectors considered central to commercial expansion across manufacturing, fintech, agribusiness and technology.
Its investment strategy will focus on businesses with established foundations and the potential to scale their operations, rather than companies requiring funding alone to get started.
The planned investments of $5 million to $10 million per portfolio company are intended to provide businesses with the financial resources to expand production, strengthen distribution networks, improve services and enter new markets.
In manufacturing, this could support increased production capacity, while fintech and technology businesses could use the capital to expand their platforms and customer bases. Agribusinesses could also benefit from investments in processing, storage and distribution infrastructure.
The firm said it has identified more than 20 qualified investment opportunities across its target sectors, giving it a pipeline of prospective deals to assess and potentially finance after the fund reaches its first close.
However, these opportunities have not necessarily translated into completed investments, as the firm continues to establish the fund and raise capital.
Operator-Led Strategy Focuses on Building Stronger Businesses
Beyond providing money, Lighthouse Capital intends to work closely with the companies it backs to improve their operations, financial management and long-term growth prospects.
The firm said its approach is designed to help founder-led businesses develop the organisational structures and professional management systems needed to operate at a larger scale.
Its value-creation framework, which it plans to implement during the first 100 days of each investment, will focus on financial reporting, operational efficiency, governance and commercial execution.
These measures are intended to improve accountability, strengthen decision-making, reduce operational inefficiencies and support more disciplined business expansion.
“The founders we are backing have already done the hardest part. They built profitable businesses in environments that would have broken most companies in more forgiving markets,” said Anthony Muraya, the firm’s chief executive officer and general partner.
He added that Lighthouse Capital would provide “the operational infrastructure that allows those businesses to grow beyond one person,” underscoring its ambition to help entrepreneurs build companies that can thrive beyond the direct involvement of their founders.
Supports for Fund Establishment and International Fundraising
To support the establishment of the fund and its international fundraising activities, Lighthouse Capital is working with DTOS Group, a trust and corporate management firm with experience structuring cross-border investment vehicles for institutional investors across Africa, Asia and other global markets.
The partnership is intended to support the arrangements required to establish the investment vehicle and engage investors across different jurisdictions.
Raising a private equity fund involves more than securing financial commitments, as fund managers must also address the legal, administrative and structural requirements associated with managing investments across borders.
Lighthouse Capital is targeting its first close before the end of 2026, although the announcement does not establish how much funding it has secured so far or whether the full $50 million target will be achieved at that initial milestone.
The firm’s existing pipeline of more than 20 qualified investment opportunities could help it move towards deploying capital once the fund is operational and the relevant investment conditions have been met.
Emphasis on Local Knowledge and Long-Term Partnerships
Lighthouse Capital has positioned its African roots as a key part of its investment philosophy, arguing that its understanding of local markets will help it build closer relationships with entrepreneurs and support businesses navigating the continent’s operating environment.
Edwin Mbugua, the firm’s chief operating officer and general partner, described the team as “Africans investing in Africa,” highlighting the connection between its investment decisions and the communities in which its members live and work.
“We wake up in Johannesburg and Nairobi, sit in traffic on Mombasa Road and in Sandton, and know which businesses are being built in our cities because we are part of those cities,” Mbugua said.
He added that this proximity shapes the firm’s approach to supporting founders and its commitment to being a responsible investment partner.
For Lighthouse Capital, the proposed fund represents an effort to combine long-term investment capital with operational expertise and local market knowledge.
If successfully raised and deployed, the fund could provide selected businesses with resources to expand while offering investors an opportunity to participate in their growth.
Its eventual impact will depend on fundraising outcomes, investment execution and the ability of its portfolio companies to deliver sustainable commercial performance.
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