NIIF closes Master Fund above target on $2.34bn

In addition to the $2.34bn raised, investors, which now include PSP Investments and the US development finance institution, will also have $3bn in co-investment rights.

Canada’s PSP Investments and the US International Development Finance Corporation are the latest LPs to commit to the National Investment and Infrastructure Fund‘s Master Fund, which has reached a fifth and final close on $2.34 billion, above its $2.1 billion target.

NIIF Limited, the fund’s manager, in which PSP and DFC will also acquire stakes, said the two firms along with existing investor Axis Bank, had committed a total of $107 million. It did not disclose the size of the individual commitments nor the size of the stakes to be acquired.

In addition to the $2.34 billion raised, investors will also have rights to co-invest an additional $3 billion alongside the fund, which invests in operating assets in core infrastructure sectors – primarily transportation and energy, NIIFL said in a statement.

While PSP Investments is a newcomer to the NIIF Master Fund, it has partnered with NIIF before. In October 2019, the Canadian pension teamed up with the Abu Dhabi Investment Authority, another NIIF Master Fund LP, and NIIF to acquire a stake in Mumbai’s international airport through a joint investment in GVK Airport Holdings, a subsidiary of Indian industrial conglomerate GVK Power & Infrastructure and the holding company of the airport. Earlier in 2019, NIIF partnered with PSP Investments’ highway operator Roadis.

Other LPs in the NIIF Master Fund include CPPIB, AustralianSuper, Australia’s largest superannuation fund; Ontario Teachers’ Pension PlanTemasek; HDFC GroupICICI Bank; and Kotak Mahindra Life Insurance.

Established in 2015 by the Indian government, NIIFL manages a total of three vehicles. In addition to its flagship Master Fund, it also manages the NIIF Fund of Funds and the NIIF Strategic Opportunities Fund. The former invests in funds focusing on climate infrastructure, housing and digital infrastructure, while the latter is a private equity vehicle, for which NIIFL is aiming to raise $2.1 billion, according to the statement. NIIFL’s assets under management across all three funds totals more than $4.4 billion.