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ADB to invest $100 million into NIIF’s Fund of Funds

Our Bureau Mumbai | Updated on March 30, 2020

The platform has now secured $700 million in commitments from three investors

Asian Development Bank (ADB) will invest $100 million equivalent into the National Investment and Infrastructure Fund (NIIF) of India’s Fund of Funds. With this investment the NIIF platform has now secured $700 million in commitments. Government of India and Asian Infrastructure Investment Bank are the other investors in the fund.

Sujoy Bose, Managing Director & Chief Executive Officer of NIIF, said, “ADB’s commitment to NIIF Fund of Funds during these extraordinary and challenging times is highly meaningful. It reflects ADB’s confidence in the continued growth and potential of the Indian economy, its skilled private equity fund managers and the large pool of determined entrepreneurs who seek capital to grow and strengthen their companies.”

“ With this capital infusion, the FoF will be able to increase its support to India-focused PE fund managers at a time when their global fundraising prospects may be challenging in the short term,” he added.

NIIF Fund of Funds (FoF) was established in 2018 with the objective of creating a vehicle to provide India-focused private equity fund managers with a go-to institutional investor operating at scale and based in India. The FoF invests into a variety of sectors and strategies through third-party managed funds. So far, it has made commitments to three funds aggregating to over ₹2,600 crores ( $350 million equivalent). The three Funds are focused on a wide range of sectors, including green energy and climate; middle-income and affordable housing; and entrepreneur-driven mid-market growth companies operating across diversified sectors. Additionally, the managers of the three funds have successfully raised $1.1 billion equivalent alongside NIIF’s investments.

ADB Vice-President for Private Sector and Public-Private Partnerships, Diwakar Gupta said, “ADB is proud to partner with NIIF in this landmark transaction especially at a time when countries globally, India included, are facing unprecedented challenges. ADB’s investment in NIIF will help catalyze institutional capital into domestic private equity funds in India, thereby contributing to greater availability of long-term growth financing for private sector companies and leading to the creation of quality jobs, social infrastructure development, and economic growth.”

Published on March 30, 2020

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