ADB invests $100m in state-backed Indian fund-of-funds
The Asian Development Bank (ADB) has invested $100 million in NIIF Fund of Funds, a rupee-denominated fund-of-funds vehicle anchored by the Indian government.
The fund-of-funds program also counts the National Investment and Infrastructure Fund (NIIF), a government-backed fund manager, and the Asian Infrastructure Investment Bank (AIIB) as investors.
Established in 2018, the program contributes capital to three independently managed funds: Green Growth Equity Fund (GGEF), managed by EverSource Capital; HDFC Capital Affordable Real Estate Fund 2 (H-CARE 2) managed by HDFC Capital; and Multiples Private Equity Fund III, which is managed by Multiples Alternate Asset Management.
According to an ADB statement, NIIF Fund of Funds has now achieved $700 million in total commitments against a target of $1 billion. The fund manager wants to boost participation by local LPs in private equity investment through backing funds raised by domestic GPs with established track records.
"With this capital infusion, NIIF Fund of Funds will be able to increase its support to India-focused private equity fund managers at a time when global fundraising prospects may be challenging in the short term," said Sujoy Bose, a managing director at NIIF.
According to a statement released by NIIF, it has committed $350 million in capital to the three funds so far. Direct investments by NIIF Fund of Funds include participation in a $330 million funding round for Ayana Renewable Power, an Indian renewable energy platform managed by CDC Group.
Separately, NIIF also manages NIIF Master Fund, a rupee-denominated infrastructure investment vehicle that counts the Canada Pension Plan Investment Board (CPPIB) as an investor, and NIIF Strategic Fund, a strategic fund focused on projects with longer-term horizons across various stages of development.
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