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NIIF marks final close of master fund, rolls out new vehicle
Photo Credit: VCCircle

The National Investment and Infrastructure Fund Ltd has marked the final close of its NIIF Master Fund at $2.34 billion (Rs 17,293 crore) after receiving commitments from a fifth set of Limited Partners.  

The firm said that Canadian pension fund Public Sector Pension Investment Board (PSP Investments), US International Development Finance Corporation (DFC), and existing investor Axis Bank, signed agreements for investments of around $107 million (about Rs 790 crore) with NIIF Master Fund.  

International investors have rights to co-invest an additional $3 billion alongside the fund.  

DFC and PSP will join other investors of the fund as shareholders of NIIF Ltd, the investment manager.

These investments mark the fifth and final close of the fund at $2.34 billion, which has exceeded its target of $2.1 billion, the firm said. 

DFC and PSP will join the government of India (GoI), Abu Dhabi Investment Authority (ADIA), AustralianSuper, CPP Investments, Ontario Teachers’ Pension Plan, Temasek, HDFC Group, ICICI Bank, Kotak Mahindra Life Insurance and Axis Bank as investors in the fund.  

Meanwhile, with the final close of the fund, NIIF chief executive officer Sujay Bose announced the launch of fundraising for NIIF Strategic Opportunities Fund (SOF). 

The new fund will have a rupee equivalent target corpus of $2.1 billion, Bose said, making the SOF one of the largest India-focussed private equity funds. It will focus on “sectors that offer growth opportunities,” Bose said without specifying the sectors.  

The NIIF Master Fund, on the other hand, has the mandate to invest in operating assets in core infrastructure sectors, primarily transportation and energy. 

Patrick Samson, senior managing director and global head of infrastructure investments at PSP, said the firm’s investment demonstrates long-term commitment to Indian infrastructure alongside its other transportation platforms ROADIS and AviAlliance. 

”DFC’s investment will support the growth and development of a key partner in the Indo-Pacific and allow DFC to facilitate investment in strategic infrastructure projects throughout India,” said DFC chief executive officer Adam Boehler. 

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