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BRICS’ New Development Bank commits USD 100 Million to NIIF Fund of Funds;1st Ever Investment in FoF

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BRICS’ New Development Bank commits $100 mn to NIIF Fund of FundsNational Investment and Infrastructure Fund Limited (NIIFL) has stated that New Development Bank (NDB) (formerly known as BRICS Development Bank) has committed to invest USD 100 Million (~ INR 727 Crore) into the NIIF Fund of Funds (FoF). This is the NDB’s 1st Equity Investment into India & the 1st ever Investment in an FoF.

  • With this investment, FoF has secured USD 800 Million in commitments.
  • The other investors in FoF apart from NDB are Government of India, Asian Infrastructure Investment Bank and Asian Development Bank.
  • FoF pumps capital into Indian private capital funds and will help Indian Companies which are looking for equities to achieve long-term growth.

NIIF FoF:

i.It was established in 2018 for providing Indian private equity fund managers access to an India-focused Institutional investor.

  • Through FoF, NIIF aims to support private equity fund managers who have a good track record of delivering returns to investors.
  • The sectors in which FoF invests are Green Energy, Social Infrastructure, Mid-Income and affordable housing, consumer services, financial services, technology and others.

ii.Until Now, FoF has made commitments of about INR 2, 750 Crore (~ USD 370 Million) into Four Funds which focus on

  • Green Energy and Climate
  • Middle-income and Affordable Housing
  • Entrepreneur-driven mid-market growth companies
  • Affordable Healthcare

The managers of 4 funds have successfully raised ~ USD 1.1 Billion equivalent funds alongside NIIF’s commitments.

Benefits to Indian Economy:

  • The Investments will hugely benefit the Indian economy which is facing difficulties due to pandemic.
  • It will also support India’s efforts to boost investment in infrastructure.
  • NDB’s support will further address issues like investment gaps, availability of institutional funding for domestic private equity funds.

NIIF’s Funds:

  • Totally, NIIF manages three funds – Master Fund, Fund of Funds and Strategic Fund.
  • The funds have been established to make infrastructure investments in India by raising capital from domestic and international investors.

Note: –

NIIFL is India’s 1st Infrastructure specific investment fund or a sovereign wealth fund.

  • It was set up by the Government of India in February, 2015.

Recent Related News:

i.On December 21, 2020 NIIFL announced closure of NIIF Master Fund, as it had completed raising of the Fund by achieving a rupee equivalent size USD 2.34 Billion exceeding its target of USD 2.1 Billion.

About National Investment and Infrastructure Fund Limited (NIIFL):
Managing Director & Chief Executive Officer (CEO) – Sujoy Bose
Headquarters – Mumbai, Maharashtra

About New Development Bank (NDB):

Chairperson of the Board of Governors – Anton Siluanov (Russia)
Vice Chairperson of the Board of Governors – Nirmala Sitharaman (Finance Minister of India)
Headquarters – Shanghai, China