The National Investment and Infrastructure Fund NIIF has achieved the first closing of Infrastructure Fund II at INR 19,000 crore, marking a milestone in India’s infrastructure financing landscape.
The fund is the largest alternative investment fund AIF in India by capital raised to date. It is a sovereign anchored fund with the Government of India acting as an anchor investor, alongside several marquee global institutional investors.
Khaitan & Co advised NIIF on the first closing of Infrastructure Fund II, providing legal counsel on the fund’s establishment and governance framework.
Implications for stakeholders
- Investors: The large initial closing and sovereign backing may enhance confidence and attract further global capital for infrastructure projects.
- Regulators: The sovereign anchor structure aligns with policy objectives to mobilise long-term capital for infrastructure while underscoring compliance with AIF norms and governance standards.
- Borrowers and project sponsors: Availability of a sizable, government-backed pool of capital could improve access to long-term funding for infrastructure initiatives.
Context and significance
As the largest AIF by capital raised to date, Infrastructure Fund II underlines the ongoing role of private capital mobilised for infrastructure in India, supported by government participation alongside global institutional investors.
