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NIIF Completes $2 Billion First Close for Infrastructure Fund II

Government of India’s 49% anchor stake signals policy backing that lowers fundraising risk for the vehicle

Overview

  • NIIF completed the first close of Infrastructure Fund II at $2 billion on Monday, opening a fund that is targeting $3.2 billion in total commitments.
  • The Government of India provided 49% of the capital in the first close, with the remainder from global pension and sovereign investors plus major Indian banks and insurers.
  • Marquee limited partners in the round include AustralianSuper, CPP Investments, a wholly owned ADIA subsidiary, Temasek and Ontario Teachers alongside ICICI Bank, HDFC Bank, Axis Bank, Kotak Life and HDFC Life.
  • Fund II will deploy across core sectors such as energy, transport and digital infrastructure and expand into urban infrastructure and electric mobility from a pipeline NIIF says is ready to start deploying.
  • NIIF plans to mobilize roughly $950 million in co-investments to let investors take direct stakes, building on the manager’s record of more than $7 billion in commitments and prior fund exits that helped scale roads, renewables and data centre platforms.