Last Updated on: 4th November 2024, 02:55 pm
Nodem Capital, a newly formed secondaries firm, has launched with a focus on meeting the growing demand for liquidity solutions in emerging markets.
The firm will provide secondary liquidity to investors in venture capital-backed assets across regions such as Emerging Europe, Turkey, Latin America, Southeast Asia, and India. These Next Wave markets are defined as countries outside of the world’s ten major advanced economies, including North America and Western Europe.
Nodem will specialise in providing partial liquidity, through preferred equity investments, to ‘non-sellers’—those who want to retain their exposure and control but need to accelerate liquidity for growth or distribution purposes.
The company is in the process of securing FCA authorisation, with plans to begin investment activities once regulatory approval is granted. Initial investor capital has been raised, and the firm aims to start investing in Q1 2025.
A launch event is scheduled for January 2025, which will be followed by monthly online panel discussions featuring leading investors from the Next Wave markets.
Nodem Capital was founded by Alex Branton, who previously held senior positions in private equity and venture capital at Sturgeon Capital. Sturgeon is an investment firm focused on emerging markets, managing over $300 million, with high-profile investors including Chevron, the IFC, and SBI. Alex has also worked at Cambridge Associates, advising major institutional investors.
Alex Branton commented: “Having spent my career as both a General Partner and Limited Partner in emerging markets, I feel uniquely qualified to solve the liquidity needs of our stakeholders.
“We’re building a firm that investors can rely on for speedy solutions tailored to the specific needs of LPs and GPs active in our markets.”
Data from Pitchbook shows that venture capital fundraising in Next Wave markets has seen a sharp rise since 2011, with a peak of nearly $57bn raised in 2021. This growth was spurred by earlier successes in the US and China, alongside significant early mobile internet developments in these regions.
Despite the maturity of early funds, large-scale exits have been delayed, with up to 20 times more companies being funded by VCs than exited.
Alex added: “Many investors are now seeking, and struggling to find, liquidity solutions for their Next Wave holdings, resulting in LPs being reluctant to commit to new funds until value is released from earlier vintages.
“Nodem is launching at a time when the investable universe is expected to expand tenfold, with the value of assets held in venture capital funds older than 10 years predicted to reach $130bn. This creates a clear opportunity to serve our clients.”
For more details about Nodem Capital, visit nodem.com.
