India’s IDFC makes $644m first close on second infra fund

IDFC has put in $64 million with global institutional investors accounting for the balance of $580 million. There are re-up commitments from investors in the first fund, and LPs have set aside an additional capital for co-investment opportunities. A final close is expected by the end of the year.

IIF2 will invest in core infrastructure sectors, including, roads, ports, airports and oil and gas pipelines.

M.K. Sinha, managing partner and CEO at IDFC Alternatives told AVCJ earlier this year that few fresh investments are being made in the infrastructure sector, while deals struck on overleveraged terms in the last five years are now deleveraging. The fund will look at assets that are operational.

"At one level the current opportunity is better because it suits our needs as a financial investor much better - it's lower risk, more certain returns than what it was back in 2008," he said.

IIF2 is the successor to IDFC's debut infrastructure fund (IIF1), which closed in June 2009 with $927 million from Indian and international institutional investors. As of June 30, IIF1 had invested 84% of its total capital in both under-construction and operational assets across 15 portfolio companies.

IDFC Alternatives manages $2.8 billion in assets across infrastructure, private equity and real estate.

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• Topics
• South Asia
• Fundraising
• Infrastructure
• India
• IDFC Private Equity
• Infrastructure
• Fundraising