The National Investment and Infrastructure Fund Limited (NIIF), India’s sovereign-anchored alternative asset manager, has secured commitments of up to $750 million for its Private Markets Fund II (PMF II). PMF II has a target fund size of $1 billion and succeeds the earlier Private Markets Fund I (PMF I), which had a size of $600 million and is now fully invested.
Key Investors in PMF II
The fund is anchored by the Government of India and has attracted commitments from major global institutional investors.
Major Investors
- Asian Infrastructure Investment Bank (AIIB)
- New Development Bank (NDB)
Additional commitments have also been received from institutional investors based in Japan and India.
Investment Strategy of PMF II
PMF II follows a multi-manager investment strategy.
Key Features
- Investment in funds managed by other private equity and venture capital managers.
- Direct co-investments alongside these funds.
The strategy aims to build a diversified portfolio in the mid-market private equity and venture capital segment, which is often difficult for global investors to access directly.
Key Investment Themes: The fund will focus on sectors aligned with India’s structural growth opportunities, including
- Energy transition
- Healthcare
- Manufacturing
- Technology and startups
- Financial inclusion.
These sectors are expected to benefit from India’s long-term economic growth and development trends.
About National Investment and Infrastructure Fund (NIIF)
- It is a sovereign-anchored, India-based alternative asset manager that invests in high-growth, sustainable infrastructure projects.
- Established Year: 2015
- It operates as a public-private partnership with 49% government ownership, managing roughly ₹39,000 crore (US$4.9 billion) to drive economic growth.
- NIIF invests through three main funds focusing on transport, energy, and digital sectors.
Key Aspects of NIIF:
- Structure: Registered with SEBI as a Category II Alternative Investment Fund (AIF).
- Objectives: Catalyze capital into the country, support infrastructure development, and provide long-term, risk-adjusted returns.
- Funds Managed:
- Master Fund: Invests in operating assets in core infrastructure sectors like roads, ports, and airports.
- Private Markets Fund: Invests in third-party-managed funds for infrastructure and related sectors.
- Strategic Opportunities Fund: Targets large-scale greenfield and brownfield projects of strategic importance.
- Key Sectors: Transportation, energy, digital infrastructure, healthcare, and manufacturing.
- Governance: The Governing Council is chaired by India’s Finance Minister.
- Partnerships: NIIF has collaborated with international entities, including a $600 million India-Japan Fund and partnerships with entities like Abu Dhabi’s sovereign fundand Temasek.
NIIF’s Expansion Plans
- Target: Raise approximately $10 billion from global investors over the next 6–7 years.
- Annual Fundraising Target: Around $1.2–1.5 billion per year.
- Objective of Expansion: To strengthen NIIF’s role in India’s infrastructure and private equity ecosystem.