NIIF targets $1bn fund-of-funds to support infra devt

The National Investment and Infrastructure Fund Ltd (NIIF), the state-backed investment fund, plans to launch its second fund-of-funds (FoF) to raise $1 billion to invest in the funds of local asset managers, three people familiar with the development said.

- Beena Parmar & Debjyoti Roy

While two of the three people said the second FoF is expected to be finalized and presented for shareholders’ approval soon, the third person noted that the plan is still in its initial stages and is expected to be launched later this year.

The proposal for the new mega fund comes amid reports that managing director and chief executive Sujoy Bose, who has been at the helm of NIIF since its inception in 2016, may quit.

NIIF’s first FoF received commitments of $600 million, with an aim to invest in up to 10 private equity funds managed by experienced fund managers in India. A FoF aims to raise money and invest it in other funds rather than directly in the assets themselves. This enables the FoF to diversify its portfolio and spread the risk across asset classes, industries, and markets.