NIIF Aims for USD 4 Bn Fundraising To Drive Infrastructure Development

New Delhi, Sep 5 (KNN) India’s quasi-sovereign fund, the National Investment & Infrastructure Fund (NIIF), is planning to raise around USD 4 billion in its largest-ever fundraising effort, according to sources familiar with the matter.

This move comes as part of the government’s broader push to upgrade the country's infrastructure, reported ET.

The fundraising is expected to take place early next year and would significantly surpass the previous Master Fund, which closed in December 2020 with USD 2.34 billion.

The new initiative marks a major restart for NIIF under the leadership of Sanjiv Aggarwal, who was appointed CEO in February after the fund faced challenges related to resource allocation and leadership transitions.

Aggarwal, an infrastructure veteran, now leads NIIF, which manages over USD 4.9 billion in assets.

In addition to raising capital for its infrastructure-focused Master Fund, NIIF is also seeking capital for its private markets fund and is considering launching a new private equity fund following the infrastructure fundraising, according to one source.

Backed by the Indian government, NIIF’s prominent global investors include the Abu Dhabi Investment Authority, AustralianSuper, and Singapore’s Temasek Holdings. Indian banks such as HDFC Bank, ICICI Bank, and Axis Bank are also key investors.

The fund is expected to secure additional co-investment commitments from its backers during the upcoming fundraising.

NIIF currently manages four funds across different asset classes, with the Master Fund being the largest and primarily focused on infrastructure investments.

Other funds include a private markets fund, a strategic opportunities fund for direct company investments, and an India-Japan private equity fund focused on environmental preservation.

Recent investments by the Master Fund include iBUS Network and Infrastructure Pvt, a company providing infrastructure solutions, as well as renewable energy platform Ayana Renewable Power Pvt and smart meter platform IntelliSmart Infrastructure Pvt.

The fund is also an owner in Athaang Infrastructure Pvt, which is reportedly looking to divest some toll road assets.

Representatives from NIIF and the Ministry of Finance have yet to comment on the forthcoming fundraising plans.

(KNN Bureau)