The Asian Development Bank (ADB) will invest $100 million into the National Investment and Infrastructure Fund (NIIF) fund of funds (FoF).

Share Market Live

NSE

The ADB joined the Government of India and Asian Infrastructure Investment Bank (AIIB) as an investor.

With ADB’s investment into the NIIF platform, the FoF has now secured $700 million in commitments.

The FoF invests in a variety of sectors and strategies through third-party managed funds. 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.

“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,” said Sujoy Bose, Managing Director & Chief Executive Officer of NIIF.

The managers of the three funds have successfully raised $1.1 billion equivalent alongside NIIF’s investments, demonstrating the institution’s ability to crowd-in capital besides its own investments.

“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,” said ADB Vice-President for Private Sector and Public-Private Partnerships, Diwakar Gupta.

First Published:Mar 30, 2020 4:10 PM IST