National Investment and Infrastructure Fund Limited, India’s sovereign-anchored alternative asset manager, has secured commitments of up to $750 million for its Private Markets Fund II (PMF II).
PMF II has a target size of $1 billion and succeeds NIIF’s $600 million Private Markets Fund I (PMF I). According to the company’s release, PMF I is now fully invested.
In an earlier interview with DealStreetAsia, a company executive said that the fund has realised and distributed more than $100 million from its investments within five years.
PMF II is anchored by the Government of India and has secured commitments from several institutional investors, including existing investors in PMF I, such as the Asian Infrastructure Investment Bank and the New Development Bank. The fund has also received commitments from institutional investors in Japan and India.
PMF II follows a multi-manager investment strategy, seeking to build a portfolio of funds and direct co-investments in the mid-market private equity and venture capital segment, which can be relatively difficult for global investors to access directly.
The fund will focus on themes including energy transition, healthcare, manufacturing, technology and startups, and financial inclusion, aiming to benefit from India’s structural growth tailwinds and deliver market-leading returns to investors.
“India’s private markets represent a compelling opportunity for investors, especially in the mid-market PE and VC segment. PMF II offers global and domestic institutional investors a gateway to this fast-growing asset class through a diversified approach with strong risk-adjusted returns. We are seeing active interest to invest in the India PE/VC segment from global investors, particularly in Europe and Japan, and are confident of reaching the $1 billion target size,” said Anand Unnikrishnan, Managing Partner, Private Markets at NIIF.
NIIF is also aiming to scale its platform significantly, with plans to raise approximately $10 billion from global investors over the next six to seven years, equivalent to $1.2–1.5 billion annually, as it seeks to expand its role in India’s infrastructure and private equity landscape.
