Indian government-backed investment platform National Investment and Infrastructure Fund Limited (NIIF) is set to raise about $1 billion for its second private markets fund, the Economic Times reported on Wednesday, citing people aware of the development.
NIIF, which launched the fundraising process early this year, is expected to make a first close at about $550 million in a few months. The government of India, which owns about 49% of NIIF, will be the largest contributor to the second fund, the report said.
NIIF did not immediately respond to a request for comment from DealStreetAsia.
NIIF manages over $4.9 billion of equity capital commitments across its four funds – Master Fund, Private Markets Fund, Strategic Opportunities Fund, and India-Japan Fund — each with a distinct investment strategy committed to supporting the country’s growth needs.
The latest vehicle will invest nearly 15-20% of the corpus in funds that are being newly raised, said the people cited above. NIIF is in discussions with sovereign wealth funds, insurance funds and pension funds from North America, Asia, Australia and West Asia for the vehicle, according to the report.
The other investors in NIIF include the Abu Dhabi Investment Authority, Asian Infrastructure Investment Bank (AIIB), Asian Development Bank (ADB), CPP Investments, Temasek, and the Ontario Teachers’ Pension Plan.
In February, NIIF committed $25 million (Rs 207 crore) to mid-market private equity firm Amicus Capital Partners’s second India fund. Most recently, NIIF invested $200 million for a majority stake in iBUS Network and Infrastructure Ltd.
