NIIF aims to double its assets under management to $10 billion in 2-3 years

India’s quasi-sovereign alternative asset manager, the National Investment and Infrastructure Fund (NIIF), aims to double its assets under management (AUM) to $10 billion over the next two to three years. NIIF will raise fresh funds as successor funds to its flagship $2.3 billion infrastructure fund and a $600 million fund-of-fund, both of which have been fully committed, with over 80% of investments already deployed.  

The target size of the successor infra fund is $3.5 billion, with an additional $1 billion in co-investment from overseas partners. NIIF aims to raise about $1 billion, a successor to its fund-of-fund (private-market fund). While the initial round of investments into the infra successor fund is expected to close during the first quarter of the next financial year (April-July 2026), the first closing of the fund of funds is likely during the current financial year itself.

Typically, the Central government invests 49% in NIIF funds, with the remaining 51% from foreign investors such as sovereign funds and large pension funds. The focus of the existing infra-fund (the Sustainable Infrastructure Fund or NIIF Master Fund – I) spans seven platforms: ports, logistics, roads, airports (transportation), renewables, smart meters (energy), and data centres (digital infrastructure). 

The objective of the private market fund, in which NIIF raised $600 million, was to serve as an anchor investor for Indian third-party fund managers and help them raise capital from global investors. NIIF has backed nine funds and, through them, has investments in over 60 portfolio companies.

The other two NIIF funds, which are still in the investment phase and each with a size of $600 million, are a growth equity fund and an India-Japan bilateral fund that focuses on climate investments and promotes business collaboration between Japanese and Indian companies.

The Central government floated the NIIF concept in the Union Budget of 2015-16, allocating ₹20,000 crore as initial seed capital to provide long-term capital for commercially viable infrastructure projects and projects of national importance. The institution, with 49% government equity and 51% from large global institutional investors, particularly sovereign funds and pension funds, was established in 2017. Since then, NIIF has facilitated the creation of almost 3.5 lakh jobs in the ecosystem by overseeing close to ₹60,000 crore of investment in the country’s infrastructure development.