India’s National Investment and Infrastructure Fund Ltd. (NIIF) has raised $2 billion (₹19,000 crore) towards the first close of its Infrastructure Fund 2, marking the largest first close for the fund to date, according to livemint.com. The fund is targeting a total corpus of $3.2 billion and aims to invest across core infrastructure sectors as well as emerging areas such as electric vehicles and urban infrastructure.
The fund’s first close was achieved through commitments from a mix of sovereign and institutional investors. NIIF plans to allocate $950 million specifically for co-investments alongside the main fund. The raised capital will be deployed to support infrastructure projects that align with India’s development goals, with a focus on expanding beyond traditional sectors to include sustainable and urban infrastructure initiatives, livemint.com reported.
This fundraise underscores growing investor interest in India’s infrastructure space, which is critical for the country’s economic growth. NIIF’s approach to include electric vehicles and urban infrastructure reflects a shift towards future-ready investments. The $2 billion first close surpasses previous milestones for the fund and positions NIIF among the largest infrastructure investment vehicles in India, comparable to other sovereign-backed funds active in the region.
NIIF’s Infra Fund 2 continues to seek additional commitments to reach its $3.2 billion target. The fund’s progress will be closely watched as it deploys capital into projects that support India’s infrastructure modernization and sustainability goals, with the next fundraising updates expected later this year, livemint.com noted.