NIIF Infrastructure Fund II has secured ₹19,000 crore in its first close, representing more than 60% of its ₹30,000-crore target size.
The fund is backed by major global and Indian institutional investors, including AustralianSuper, CPP Investments, Temasek, ADIA, ICICI Bank, HDFC Bank and Axis Bank.
NIIF expects to mobilise another ₹9,000 crore in co-investment capital, with the fund focused on energy, transport, digital infrastructure, urban infrastructure and electric mobility.
NIIF Secures ₹19,000 Crore From Global Investors For Infrastructure Fund II
NIIF Infrastructure Fund II has raised ₹19,000 crore in its first close, backed by the Government of India and leading global and Indian institutional investors, as it targets a ₹30,000-crore corpus
AI generated representative image
Summary
Advertisement
The National Investment and Infrastructure Fund (NIIF) has raised ₹19,000 crore (around $2 billion) in the first close of its second infrastructure fund, securing more than 60% of its targeted corpus from the government and leading global and Indian institutional investors.
NIIF Infrastructure Fund II has a target size of ₹30,000 crore (around $3.2 billion).
The fund is anchored by the Government of India and has attracted capital from sovereign wealth funds, pension funds, insurance companies and major Indian financial institutions.
Among the global investors backing the fund are AustralianSuper, CPP Investments, a wholly owned subsidiary of the Abu Dhabi Investment Authority, Ontario Teachers’ Pension Plan and Temasek.
Indian investors include ICICI Bank, HDFC Bank, Axis Bank, Kotak Life Insurance and HDFC Life Insurance.
NIIF said the strong participation from investors who had also backed its first infrastructure fund reflects continued confidence in its investment strategy, governance standards and ability to build and operate large-scale infrastructure businesses.
Advertisement
₹9,000 Crore Co-Investment Capital Expected
Alongside the fund, NIIF expects to mobilise an additional ₹9,000 crore (around $950 million) in co-investment capital. This will allow investors to participate directly in select transactions at scale, further increasing the pool of institutional capital available for Indian infrastructure projects.
Infrastructure Fund II will invest in established sectors such as energy, transport and digital infrastructure, while also expanding into areas including urban infrastructure and electric mobility.
NIIF said its investment approach combines local deal sourcing, sector expertise, active governance, co-investment opportunities and long-term asset management.
Builds On First Infrastructure Fund
The new fund builds on NIIF's first infrastructure fund, which raised ₹16,000 crore (around $2.34 billion) and invested across renewable energy, transmission and distribution, battery storage, roads, ports, logistics, airports, data centres and smart metering.
NIIF said its infrastructure platform has also generated value through completed and announced exits from investments including renewable energy, road assets and smart metering.
Advertisement
Sanjiv Aggarwal, Managing Director and CEO of NIIF, said the second fund reflects continued investor confidence in India's infrastructure opportunity and NIIF's ability to deploy long-term capital with sector expertise and strong governance.
Vinod Giri, Managing Partner, Infrastructure, NIIF, said the fund would build on the operating capabilities developed through the first fund and selectively invest across both established and emerging infrastructure segments.
He added that NIIF already has a strong pipeline of potential investments.
NIIF is India's sovereign-anchored alternative asset manager and currently manages more than $7 billion in equity capital commitments across infrastructure, private markets, growth equity and climate investments.