Nodem Capital, a newly established secondaries firm, has officially launched with a mission to address the significant demand for liquidity solutions in emerging markets.
The company will provide secondary liquidity to holders of venture capital-backed assets in regions including Emerging Europe, Turkey, Latin America, Southeast Asia, and India. These areas, referred to as Next Wave markets, encompass all countries except for the ten major advanced economies, such as North America and Western Europe.
Nodem specialises in providing partial liquidity via preferred equity investments to ‘non-sellers’—those who want to maintain control and exposure while accelerating liquidity for growth or distributions.
The firm is currently pursuing authorisation from the FCA, with investment activities expected to begin following regulatory approval. Initial investor funding is secured, and Nodem aims to commence investments in the first quarter of 2025.
In January 2025, Nodem will host a launch event, followed by monthly online panel discussions with top investors from Next Wave markets.
Founded by Alex Branton, a former senior executive at Sturgeon Capital, Nodem draws on deep experience in private equity and venture capital. Sturgeon Capital is an emerging markets investment firm managing over $300 million in assets, with investors such as Chevron, the IFC, and SBI. Prior to joining Sturgeon, Alex worked at Cambridge Associates, advising some of the world’s most sophisticated institutions.
Alex Branton said: “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.”
According to Pitchbook data, venture capital fundraising in Next Wave markets has grown rapidly since 2011, peaking at nearly $57bn in 2021. The rise in capital was driven by earlier successes in the US and China, as well as early mobile internet breakthroughs in these regions.
However, despite early fund vintages maturing, large-scale exits have been delayed, 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 anticipated ten-fold increase in the investable universe, which we estimate will grow to around $130bn. This gives us a clear opportunity to serve clients in these markets.”
For further information on Nodem Capital, visit nodem.com.
