CPPIB commitment brings NIIF Master Fund to $2.1bn

The Canadian pension’s $600m commitment shows ‘alignment of the Master Fund’s strategy with what large institutional investors seek in India', NIIF says.

Canada Pension Plan Investment Board has committed up to $600 million to invest in the National Investment and Infrastructure Fund, a vehicle backed by the Indian government.

CPPIB will commit $150 million to NIIF’s flagship Master Fund, with the right to invest a further $450 million alongside the vehicle in future opportunities.

The deal also sees CPPIB become a shareholder in NIIF Limited, the fund’s investment management company, in which the Indian government owns 49 percent. The fund did not disclose the size of the stake CPPIB would take.

The commitments mark a fourth close for NIIF’s Master Fund, which has now reached $2.1 billion, its target fund size. The fund, which targets core infrastructure investments in the transport, energy and urban infrastructure sectors, had an initial target of $2 billion that was raised earlier this year.

It is unclear whether NIIF will continue fundraising for the vehicle. The sovereign wealth fund did not respond to a request for comment.

NIIF has also raised a co-investment pool of $3 billion. It said in a statement this would enable the Master Fund to “invest at the scale required” for India’s infrastructure projects.

Sujoy Bose, managing director and chief executive of NIIF, said CPPIB’s commitment “demonstrates the alignment of the NIIF Master Fund’s investment strategy with what large institutional investors seek in the infrastructure sector in India”.

In August, AustralianSuper, Australia’s largest superannuation fund, and Ontario Teachers’ Pension Plan each committed $250 million to the NIIF Master Fund as well as $750 million each in co-investment rights.

Other investors in the Master Fund include the Abu Dhabi Investment Authority, Temasek, Axis Bank, HDFC Group, ICICI Bank and Kotak Mahindra Life Insurance.