Nodem Capital, a new secondaries firm, has officially launched, aiming to fulfil the growing need for liquidity solutions across emerging markets.
The firm’s focus will be 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 markets, known as the Next Wave, include all countries apart from the world’s top ten advanced economies, such as North America and Western Europe.
Nodem will specialise in delivering partial liquidity to ‘non-sellers’ through preferred equity investments, allowing these investors to retain exposure and control while unlocking liquidity for growth or distributions.
The company is currently seeking FCA authorisation, with plans to begin operations following regulatory approval. Initial investor capital has already been secured, and investments are expected to commence in the first quarter of 2025.
In January 2025, Nodem will host a launch event and begin a series of monthly online panel discussions with prominent 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, a firm managing over $300 million in emerging market assets. Prior to that, Alex worked at Cambridge Associates, advising leading global 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 data from Pitchbook, venture capital fundraising in Next Wave markets has experienced significant growth since 2011, reaching nearly $57bn in 2021. This boom was driven by early successes in the US and China, as well as major mobile internet breakthroughs in these regions.
However, exits have been slow, with up to 20 times more companies being funded by VCs than are exiting.
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 in anticipation of a ten-fold increase in the investable universe, which is projected to grow to around $130bn. This presents a clear opportunity to serve clients in these markets.”
For more information, visit nodem.com.
