Nodem Capital, a newly established secondaries firm, has launched with the aim of addressing the pressing need for liquidity solutions in emerging markets.
The firm will focus on providing secondary liquidity to holders of venture capital-backed assets in regions such as Emerging Europe, Turkey, Latin America, Southeast Asia, and India. These regions, collectively known as Next Wave markets, are defined as all countries outside of the world’s ten major advanced economies, including North America and Western Europe.
Nodem will offer partial liquidity through preferred equity investments, allowing ‘non-sellers’ to maintain exposure and control while unlocking liquidity for distribution or growth.
Nodem is currently pursuing FCA authorisation, with investments expected to begin once regulatory approval is granted. Initial investor funding is already secured, and the firm plans to start investing in the first quarter of 2025.
A launch event is scheduled for January 2025, after which Nodem will host monthly online panel discussions featuring key investors from Next Wave markets.
The company was founded by Alex Branton, who previously worked at Sturgeon Capital, an emerging markets investment firm managing over $300 million. Alex also brings experience from Cambridge Associates, where he advised major institutional investors.
Alex Branton stated: “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 highlights the rapid growth in venture capital fundraising across Next Wave markets, with nearly $57bn raised in 2021, driven by early successes in the US, China, and mobile internet advancements in these regions.
However, while early fund vintages are maturing, large-scale exits have been slow, with up to 20 times more companies being financed 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 ahead of an expected ten-fold expansion in the investable universe, with assets held in venture capital funds older than 10 years expected to reach around $130bn. This provides a clear opportunity for us to meet client needs in these markets.”
For more information, visit nodem.com.
