India’s National Infrastructure and Investment Fund (NIIF) has plans to launch a third fund, a $2 billion long-term fund to finance various mega-projects, according to media outlets.
Recently, the board of directors of the Asian Infrastructure Investment Bank approved an equity investment of $100 million in NIIF’s fund of funds.
NIIF, anchored by the Government of India, is a collaborative investment platform for international and domestic investors that are keen on investing in commercially viable Indian infrastructure projects.
NIIF’s fund of funds will anchor or invest in funds managed by fund managers who have good track records in infrastructure and associated sectors in India. Some of the sectors of focus include green infrastructure, mid-income and affordable housing, infrastructure services, and related sectors.
The NIIF’s two operational funds are the NIIF master fund, which invests directly into companies, and a fund of funds that invests in funds managed by third parties.