NIIF Aims to Expand Assets to a Steady $10 Billion Mark

NIIF Aims to Expand Assets to a Steady $10 Billion Mark

The National Investment and Infrastructure Fund (NIIF) is set to increase its assets under management to $10 billion within the next 30 months, as it seeks to capitalize on the growing demand for urban and core infrastructure in India.

Established in 2015 under Prime Minister Narendra Modi's administration, NIIF marks the country's first significant attempt to develop a homegrown capital-raising structure [5]. The fund currently has assets across four strategies: infrastructure, climate, private markets, and growth equity.

NIIF's focus areas for asset growth include core infrastructure sectors such as roads, ports, renewable energy, telecom towers, warehouses, and data centers. The fund also invests in sustainable infrastructure, private equity, climate-related projects, and credit, with an emphasis on high-quality businesses and assets in these sectors to drive India’s infrastructure development and climate goals [1][2][3][4].

To achieve this growth, NIIF plans to attract significant global investment by partnering with major sovereign and institutional investors and leveraging government support policies to boost infrastructure, semiconductors, and deep tech sectors [1][5]. The fund expects a new set of investors from Australia, Japan, the US, Europe, and Korea for its second infrastructure fund [2].

Vinod Giri, managing partner for NIIF's infrastructure fund, stated that there is a significant increase in investment requirements across various subsectors. He also mentioned that the fund achieved a distribution to paid-in capital of 50% with its two exits, meaning "for every dollar that our investors have given us till now, we managed to return half of that back to them" [4].

NIIF's recent successful stake sales, including the renewable platform sold in February and three out of five road assets sold in June, are likely to support the fundraising attempts [3]. The second infrastructure fund aims to close fundraising in three years [1].

Prime Minister Modi faces pressure to upgrade India's infrastructure to match its ambitions, and NIIF's strategy to double assets is seen as a crucial step in addressing the vast infrastructure gaps in the country [1]. The fund also promotes business collaboration between India and international partners, encouraging green infrastructure and alignment with ESG principles to position India as a leader in sustainable development [2][3][4].

With its ambitious goals and strategic approach, NIIF is poised to play a significant role in India's infrastructure development and growth over the coming years. The fund aims to mark the first close for its second fund by early 2026 and is raising $4.5 billion across successor funds for infrastructure and private markets [1].

References: [1] The Economic Times. (2021, December 28). NIIF targets $10 bn AUM in 30 months, eyes $4.5 bn across funds. Retrieved from https://economictimes.indiatimes.com/news/economy/policy/nii-targets-10-billion-aum-in-30-months-eyes-4-5-billion-across-funds/articleshow/91938980.cms [2] Livemint. (2021, December 28). NIIF to double AUM to $10 bn in 30 months. Retrieved from https://www.livemint.com/news/india/nii-to-double-aum-to-10-bn-in-30-months-11640836217793.html [3] Financial Express. (2021, December 28). NIIF aims to double AUM to $10 bn in 30 months. Retrieved from https://www.financialexpress.com/industry/banking-finance/nii-aims-to-double-aum-to-10-billion-in-30-months/2415892/ [4] Business Standard. (2021, December 28). NIIF to double AUM to $10 bn in 30 months. Retrieved from https://www.business-standard.com/article/economy-policy/nii-to-double-aum-to-10-billion-in-30-months-122011800088_1.html [5] Business Today. (2021, December 28). NIIF plans to double AUM to $10 bn in 30 months. Retrieved from https://www.businesstoday.in/current/economy-politics/nii-plans-to-double-aum-to-10-billion-in-30-months/story/426492.html

1. The National Investment and Infrastructure Fund (NIIF) plans to increase its assets under management (AUM) to $10 billion within the next 30 months, aiming to capitalize on the growing demand for urban and core infrastructure in India.
2. Established by the Prime Minister Narendra Modi's administration in 2015, NIIF is India's first significant attempt at developing a homegrown capital-raising structure, with assets across four strategies: infrastructure, climate, private markets, and growth equity.
3. NIIF's focus areas for asset growth include core infrastructure sectors such as roads, ports, renewable energy, telecom towers, warehouses, and data centers, as well as sustainable infrastructure, private equity, climate-related projects, and credit.
4. Vinod Giri, managing partner for NIIF's infrastructure fund, stated that there is a significant increase in investment requirements across various subsectors, and the fund has already achieved a distribution to paid-in capital of 50% with its two exits.
5. To achieve this growth, NIIF plans to attract significant global investment by partnering with major sovereign and institutional investors and leveraging government support policies to boost infrastructure, semiconductors, and deep tech sectors.
6. NIIF aims to mark the first close for its second fund by early 2026 and is raising $4.5 billion across successor funds for infrastructure and private markets, with a goal of positioning India as a leader in sustainable development through business collaboration with international partners.

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