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New Development Bank to invest in NIIF’s fund of funds
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New Development Bank (formerly Brics Development Bank) has committed $100 million (Rs 727.6 crore) to the Fund of Funds managed by National Investment and Infrastructure Fund Limited (NIIF). 

This takes the total commitments secured by the fund of funds to $800 million (about Rs 5,820 crore).

New Development Bank joins other investors in the fund of funds: the government of India, Asian Infrastructure Investment Bank and Asian Development Bank (ADB), a statement by NIIF said.

This is New Development Bank’s first equity investment in India and the first-ever in a fund of funds, it added.

NIIF, a quasi-sovereign investment platform for international and Indian investors focused on infrastructure, private equity and other strategically enabling investments, manages over $4.5 billion of equity capital commitments across three funds – master fund, fund of funds and strategic opportunities fund.

The fund of funds, established in 2018, invests in sectors including green energy, social infrastructure, mid-income and affordable housing, consumer services, financial services, and technology.

As of date, it has made commitments to four funds totalling over Rs 2,750 crore (about $370 million).

The four funds under it are focused on green energy and climate; middle-income and affordable housing; entrepreneur-driven mid-market growth companies; and affordable healthcare.

The managers of the four funds have successfully raised over $1.1 billion alongside NIIF’s commitments.

In November last year, the government approved a capital infusion of Rs 6,000 crore ($812 million) into the NIIF.

As on March-end 2020, it held a 49% stake in NIIF, Green Rock B 2014 Ltd 22.37%, ICICI Bank 9.90% and HDFC Standard Life Insurance Company 5.91%.

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