India’s National Investment and Infrastructure Fund (NIIF) on Monday announced a $2 billion (Rs 19,000 crore) first close of NIIF Infrastructure Fund II, representing more than 60% of the vehicle’s $3.2 billion target.
The sovereign-anchored alternative asset manager also said it expects to mobilise about $950 million (Rs 9,000 crore) in co-investment capital, making way for investments in specific deals in the Indian infrastructure sector.
The first close is anchored by the Government of India and backed by investors including AustralianSuper, CPP Investments, Ontario Teachers’ Pension Plan, Temasek, ICICI Bank, HDFC Bank, Axis Bank, Kotak Life Insurance, HDFC Life Insurance, and a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA).
The NIIF had earlier announced a Rs 30,000 crore ($3.5 billion) commitment from the Indian government, half of which was allocated to NIIF Infrastructure Fund II.
AustralianSuper too had recently announced a further A$500 million ($346 million) commitment to NIIF Infrastructure Fund II, on top of the A$240 million it committed seven years ago. The pension fund now holds A$3.3 billion in investments in India.
NIIF Infrastructure Fund II will focus on sector-specific platforms across transportation, energy, digital infrastructure, and emerging areas such as urban infrastructure and e-mobility.
NIIF was established in 2015 to utilise catalytic public capital to attract large-scale institutional investments into infrastructure and other nationally important sectors. Since its inception, NIIF has returned approximately Rs 12,000 crore to investors, equivalent to around half of drawn capital, through landmark portfolio exits, demonstrating its ability to deliver superior commercial returns at scale.
NIIF manages more than $7 billion in equity commitments across four strategies: infrastructure, private markets, growth equity, and climate investments. In March, it secured commitments of up to $750 million for its Private Markets Fund II, which has a target size of $1 billion and succeeds NIIF’s $600 million Private Markets Fund I.
NIIF also plays a strategic advisory role, assisting central government departments and state entities on new PPP initiatives and investment ideas that enable greater private sector investments. NIIF’s investments are aligned with India’s long-term priorities, including Gati Shakti, Digital India, Make in India, COP commitments and flagship schemes such as FAME and PM E-DRIVE.
