The National Investment and Infrastructure Fund (NIIF) is positioning its India-Japan Fund (IJF) for faster climate-focused investments over the next 18-24 months. According to a senior fund executive interviewed by Mint, the fund has $600 million in commitments and is targeting $50-60 million in growth equity investments across climate-focused sub-sectors. The fund has already deployed approximately 40% of its commitments and is expected to complete its remaining capital deployment within the specified timeframe. Recent developments show the fund's continued momentum with Ather Energy securing ₹1,200 crore in preferential issue led by existing shareholder Hero MotoCorp, alongside the IJF and co-founders, as reported by multiple sources.
The IJF is strategically targeting two-thirds climate-focused investments and one-third India-Japan corridor opportunities, as outlined by partner Krishna Kumar to Mint. The fund has already backed Ather Energy, Eka Mobility and Mahindra Last Mile Mobility and is evaluating opportunities in mobility, energy efficiency, energy transition and waste recycling. Kumar's team is specifically looking for opportunities where Japanese companies can bring technical expertise to the Indian market, with the fund maintaining a private equity approach that avoids venture capital and business model risks. The fund's recent investments demonstrate this strategy, including backing Ather Energy's ₹1,200 crore preferential issue and supporting the company's expansion in India's electric mobility market.
The IJF operates as a strategic partnership between the government of India and the Japan Bank for International Cooperation (JBIC), with India holding a 49% stake and JBIC maintaining 51% following the fund's 2023 final close. According to Kumar's interview with Mint, the fund has evaluated more than 300 potential companies and expects the climate asset class to evolve significantly over the next 5-10 years. The NIIF platform manages approximately $5 billion across four funds with backing from institutional investors including Abu Dhabi Investment Authority, Temasek, and Ontario Teachers' Pension Plan.
The fund has already achieved significant exits, including TPG's acquisition of 100% stake in Aseem Infrastructure Finance alongside co-investors GIC and ICICI Bank, providing an exit to NIIF. As reported by Mint, Kumar indicated that the firm is likely to target a larger second fund where it will expand its investor base, though no specific timeline was provided. The NIIF has returned almost $1.9 billion in capital across its funds since inception, with successful exits including Intellismart, Ayana Renewables, Manipal Hospitals, and Ather Energy. Recent developments show continued exit momentum with Ather Energy's ₹1,200 crore preferential issue providing additional liquidity opportunities for the fund.
