Nodem Capital, a newly launched secondaries firm, aims to provide liquidity solutions in the fast-growing Next Wave venture capital markets.
The firm will focus on offering secondary liquidity to investors in venture capital-backed assets in regions such as Emerging Europe, Turkey, Latin America, Southeast Asia, and India. These Next Wave markets represent all countries outside of the ten advanced economies, including North America and Western Europe.
Nodem specialises in providing partial liquidity through preferred equity investments to investors who want to maintain their exposure and control while unlocking liquidity for growth or distributions.
Nodem is currently working towards FCA authorisation, with plans to start investing once regulatory approval is obtained. Initial investor capital is already in place, with investments expected to begin in early 2025.
To mark its launch, Nodem will hold a special event in January 2025, followed by monthly online panel discussions featuring prominent investors from Next Wave markets.
The company was founded by Alex Branton, a former senior member of the private equity and venture capital teams at Sturgeon Capital, an emerging markets investment firm managing over $300 million in assets. Before joining Sturgeon, Alex worked at Cambridge Associates, advising top global institutions.
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.”
Pitchbook data shows that venture capital fundraising in Next Wave markets has surged in recent years, peaking in 2021 with nearly $57bn raised. This was fuelled by early successes in the US and China, as well as major advancements in mobile internet within these regions.
Despite this, large-scale exits have been delayed, with up to 20 times more companies being financed by VCs than have 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 ahead of an expected ten-fold increase in the investable universe, with assets held in venture capital funds older than 10 years projected to reach $130bn. This presents a significant opportunity for us to serve clients in these markets.”
For further details, visit nodem.com.
