NIIF Fund of Funds raises $100 million
MUMBAI: The National Investment and Infrastructure Fund (NIIF) on Thursday said that the New Development Bank, formerly known as the BRICS Development Bank, has committed to invest $100 million into the NIIF Fund of Funds (FOF), which invests in Indian private capital funds.
With NDB’S investment, the FOF has secured $800 million in commitments, NIIF said in a statement. NDB joins the Government of India, Asian Infrastructure Investment Bank and Asian Development Bank as an investor in the FOF.
“This investment marks NDB’S first equity investment into India and its first ever investment into a Fund of Funds. Through this investment in the FOF, NDB aims to support private capital investments in India when Indian companies are seeking muchneeded equity to achieve their long-term growth,” NIIF said.
The FOF was established in 2018 to provide homegrown private equity fund managers access to an India-focused institutional investor that operates at scale. Through the FOF, NIIF aims to support private equity fund managers that have demonstrated a strong track record of delivering returns to investors.
The FOF also provides an opportunity for global institutional investors to build a portfolio of growth-focused funds in India and selectively co-invest into a wide range of investment opportunities.
The FOF invests in a variety of sectors, including green energy, social infrastructure, mid-income and affordable housing, consumer services, financial services, technology and others.
So far, FOF made commitments to four funds aggregating over ₹2,750 crore (approx. $370 million). The four funds 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 funds have raised over $1.1 billion equivalent alongside NIIF’S commitments.
“NDB’S investment in the NIIF FOF will provide additional funds to Indian private sector businesses facing difficulties during this time of crisis. The partnership with NIIF allows NDB to access to a diversified range of portfolio funds and support the Government of India’s on-going effort to promote investment in infrastructure,,” said NDB vice president and chief operations officer, Xian Zhu.