NDB commits USD 100 million to NIIF Fund of Funds (FoF)

NEW DELHI: National Investment and Infrastructure Fund (NIIF) on Thursday said that Shanghai-based New Development Bank has committed to invest USD 100 million (around Rs 728 crore) in NIIF Fund of Funds (FoF).

With NDB's investment, the FoF has secured USD 800 million in commitments, according to a statement.

NDB joins the Government of India (GoI), Asian Infrastructure Investment Bank (AIIB) and Asian Development Bank (ADB) as an investor in the FoF, it added.


Set up as a Category II Alternative Investment Fund (AIF) in 2015, the NIIF currently manages three funds with distinct strategies -- Master Fund, Fund of Funds and Strategic Opportunities Fund.

"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 much-needed equity to achieve their long-term growth," the statement said.

Further, the investment supports NDB's and NIIF's common goal of investing responsibly in a number of sectors that support India's growth and economy, it added.

The FoF was established in 2018 with the objective of providing homegrown Indian 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.

As of date, the statement said the FoF has made commitments to four funds aggregating over Rs 2,750 crores (around USD 370 million equivalent).

The four funds are focused on green energy and climate; middle-income and affordable housing; entrepreneur-driven mid-market growth companies; and affordable healthcare, it said.

The managers of the four funds have successfully raised over USD 1.1 billion equivalent alongside NIIF's commitments.