NIIF raises ₹19,000 crore for infra fund, with Temasek, HDFC Bank among backers

The Investment and Infrastructure Fund (NIIF) has raised ₹19,000 crore ($2 billion) in the first close of its second infrastructure fund, crossing 60% of its ₹30,000 crore target and securing backing from the Government of India, sovereign wealth funds, pension funds, insurers and Indian financial institutions.

NIIF said on Monday, August 31, that the first close of NIIF Infrastructure Fund II was anchored by the Government of India. Global investors include AustralianSuper, CPP Investments, a wholly owned subsidiary of the Abu Dhabi Investment Authority, Ontario Teachers’ Pension Plan and Temasek.

Indian investors include ICICI Bank, HDFC Bank, Axis Bank, Kotak Life Insurance and HDFC Life Insurance.

The fund is expected to invest across energy, transport and digital infrastructure, while also targeting urban infrastructure and electric mobility.

NIIF also expects to mobilise around ₹9,000 crore ($950 million) in co-investment capital alongside the fund. This would allow investors to participate in selected transactions separately from their commitments to the fund.

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Fund builds on first infrastructure vehicle

The second fund builds on NIIF’s first infrastructure vehicle, which raised ₹16,000 crore ($2.34 billion) and invested across areas including renewable energy, transmission and distribution, battery storage, roads, ports and logistics, airports, data centres and smart metering.

NIIF said existing investors in the first fund have also backed the second vehicle, signalling continued institutional interest in India’s infrastructure growth story.

Commenting on the fundraise, NIIF Managing Director and CEO Sanjiv Aggarwal said Infrastructure Fund II reflects continued confidence among its partners in India’s infrastructure opportunity and NIIF’s ability to deploy long-term capital with discipline, sector expertise and strong governance.

“India’s infrastructure build-out is creating opportunities at scale, and NIIF is well positioned to connect global and domestic institutional capital with high-quality businesses,” he added.

Speaking on the investment strategy, Vinod Giri, Managing Partner, Infrastructure, NIIF, said the second fund would build on the operating capabilities established through its predecessor.

“We will continue to create infrastructure platforms at scale, take a hands-on approach to value creation and invest selectively across both established and emerging infrastructure sectors,” Giri said.

“With a strong pipeline already in place, we see significant opportunities to deploy capital where NIIF can bring sector expertise, operating capability and execution at scale,” he added.

NIIF said its infrastructure strategy spans the origination, development, operation and eventual realisation of infrastructure assets. The fund manager has announced and completed exits from investments across areas including renewables, road assets and smart metering.

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