AIIB approves $100m commitment to Indian sovereign fund

AIIB’s investment will support the first close of NIIF’s fund-of-funds, which is intended to partner with Indian fund managers raising vehicles across a range of investment strategies and has a target size of INR65 billion ($954 million). The bank will consider a further $100 million commitment to the final close of the fund, according to a statement, and will also contribute environmental, social and governance guidance to NIIF.

The fund-of-funds will support India-focused vehicles raised by managers with long-term experience investing in India and a successful track record in infrastructure and related sectors. It is open to early stage, growth and control investors, along with equity, mezzanine and debt strategies.

NIIF aims to raise about INR400 billion for a mother fund and several subsidiary vehicles, including the fund-of-funds and the NIIF Master Fund. The latter invests in mature businesses with long-term track records and is backed by the Abu Dhabi Investment Authority along with the Indian government.

The Master Fund joined Dubai-based port operator DP World last year to create Hindustan Infralog, a platform to invest up to $3 billion in transport and logistics assets. The platform made its first investment in March, purchasing Indian logistics player Continental Warehousing Corporation for around $580 million.

NIIF is also an anchor investor, along with the UK government, in the Green Growth Equity Fund (GGEF), a PE vehicle set up in 2017 to invest GBP500 million ($710 million) in sustainable infrastructure projects in India. Everstone Capital and Lightsource BP were chosen earlier this year to co-manage the fund.

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• Topics
• South Asia
• Infrastructure
• Fundraising
• Fund-of-funds
• India
• LPs
• Asian Infrastructure Investment Bank