The National Investment and Infrastructure Fund has successfully completed the first close of its second infrastructure fund, raising ₹19,000 crore ($2 billion) and crossing more than 60% of its ₹30,000 crore target. As reported by Business Standard, this achievement represents a significant milestone in NIIF's fundraising efforts and reflects robust investor confidence in India's infrastructure development. The fundraising was anchored by the Government of India, demonstrating strong government backing for India's infrastructure development, with the alternative asset manager announcing that the first close is anchored by the Government of India and supported by a high-quality investor base spanning sovereign wealth funds, pension funds, insurance companies and leading Indian financial institutions. According to NIIF's Managing Partner, Infrastructure, Vinod Giri, the institution is building on the operational capability and performance foundation set by the first fund and sees selective investment opportunities in both established and emerging sectors.
Canada Pension Plan Investment Board (CPP Investments) has committed investment of around ₹2,070 crore ($215 million) to NIIF Infrastructure Fund II, marking a significant expansion of their existing partnership. As reported by The Economic Times, this commitment builds on their strong existing partnership and reflects confidence in NIIF's platform ability to originate, build and scale high-quality infrastructure assets. James Bryce, MD, Head of Infrastructure at CPP Investments, stated that through Fund II, they see an attractive opportunity to deploy long-term capital alongside a trusted partner while generating solid risk-adjusted returns for CPP contributors and beneficiaries. The investment builds on CPP Investments' existing association with NIIF, having invested in its first infrastructure fund and invested directly in NIIF's investment management platform. According to NIIF's Managing Director and CEO Sanjiv Aggarwal, this commitment reflects the strength of their relationship and shared conviction in India's long-term infrastructure opportunity, with the institution looking forward to building on this partnership to deploy capital at scale and create high-quality infrastructure businesses that support India's next phase of growth.
The NIIF Infrastructure Fund II has attracted marquee investors including AustralianSuper, CPP Investments (a wholly owned subsidiary of the Abu Dhabi Investment Authority), Ontario Teachers' Pension Plan, Temasek Holdings, ICICI Bank, HDFC Bank, Axis Bank, Kotak Life Insurance and HDFC Life Insurance. According to The Hindu BusinessLine, these global and domestic institutional investors reflect the international appeal of India's infrastructure investment opportunities, with existing investors from the first fund also backing the second vehicle, signalling continued institutional interest. As reported by NIIF, existing investors from its first infrastructure fund have also strongly supported the new fund, demonstrating continued confidence in NIIF's investment strategy, governance standards, execution capability, and its track record of building large-scale infrastructure businesses. The fund is supported by a high-quality investor base spanning sovereign wealth funds, pension funds, insurance companies and leading Indian financial institutions.
The fund will focus on core infrastructure sectors such as energy, transport and digital infrastructure, while expanding into emerging areas including urban infrastructure and electric mobility. As reported by The Economic Times, the fund will invest in infrastructure assets and platforms across India, focusing on sectors benefiting from long-term structural trends including urbanization, digitalization and energy transition. NIIF manages more than $7 billion in equity capital commitments across infrastructure, private markets and climate investments, with the Indian government holding a 49% stake in the firm. According to NIIF's Managing Director and CEO Sanjiv Aggarwal, this second fund reflects partners' confidence in India's infrastructure opportunity and NIIF's disciplined capital deployment capability. According to NIIF's Managing Partner, Infrastructure, Vinod Giri, the second infrastructure fund builds on the strong performance and operating capabilities established through the first fund, with the institution continuing to create infrastructure platforms at scale, take a hands-on approach to value creation and invest selectively across both established and emerging infrastructure sectors.
Separately, NIIF expects to raise ₹9,000 crore ($950 million) in co-investment capital, which will allow investors to participate in specific deals within the Indian infrastructure space. As reported by The Hindu BusinessLine, this additional funding mechanism provides investors with enhanced opportunities to increase their exposure to India's infrastructure development projects, allowing participation in selected transactions separately from their commitments to the fund. According to NIIF's Managing Partner, Infrastructure, Vinod Giri, this will give investors the opportunity to participate in selected deals at scale and further strengthen NIIF's role as a partner for institutional capital in Indian infrastructure. Alongside the fund, NIIF expects to mobilise around ₹9,000 crore ($950 million) in co-investment capital, enabling investors to participate at scale in select transactions and further deepening NIIF's role as a partner of choice for institutional capital seeking exposure to Indian infrastructure.
