Money & Banking

BRICS’ New Development Bank commits $100 mn to NIIF Fund of Funds

Our Bureau Mumbai | Updated on February 11, 2021

This is NDB’s first equity investment into India, and first ever investment in an FoF

New Development Bank (NDB), the multilateral development bank established by the BRICS states, has announced a commitment of $100 million into the NIIF Fund of Funds (FoF). With NDB’s investment, the FoF has secured $800 million in commitments and joins the Government of India (GoI), Asian Infrastructure Investment Bank (AIIB) and Asian Development Bank (ADB) as an investor in the FoF.

This investment marks NDB’s first equity investment into India and its first ever investment in an FoF.

The FoF was established in 2018 with the objective of providing homegrown Indian private equity fund managers access to an India-focused institutional investor that operates at scale.

As of date, the FoF has made commitments to four funds aggregating over ₹2,750 crore (approx. $370 million equivalent).

Sujoy Bose, Managing Director & Chief Executive Officer, NIIF, said, “With the Indian economy well on the path to recovery from the Covid-19-induced slowdown, the Indian private equity sector is expected to be a major provider of equity capital for the continued long-term growth of businesses. The FoF provides global institutional investors with an opportunity to build a diversified portfolio of growth investments through experienced Indian fund managers."

NDB Vice President and Chief Operations Officer, Xian Zhu, said, “NDB’s investment in the NIIF FoF will provide additional funds to Indian private sector businesses facing difficulties during this time of crisis. The partnership with NIIF allows NDB access to a diversified range of portfolio funds and support the Government of India’s on-going effort to promote investment in infrastructure. NDB support will address investment gaps and the availability of institutional funding for domestic private equity funds in India, contributing overall to infrastructure development and economic growth.”

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Published on February 11, 2021
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