National 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.
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.
- 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.
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