ADIA-backed India fund to seek $4 billion for infrastructure

India’s quasi-sovereign fund plans to raise about $4 billion in its biggest fundraising yet, people familiar with the matter said, as the government moves to upgrade infrastructure across the country.

The National Investment and Infrastructure Fund, backed by the Indian government and several global investors, aims to raise the money early next year, the people said, asking not to be identified disclosing private information.

The new fund would be significantly larger than the previous Master Fund, which closed in December 2020 at $2.34 billion, and would mark a relaunch under a new CEO. NIIF is also raising capital for its private markets fund and will consider a new private equity fund after its infrastructure fundraising, one of the people said.

The company has been going through a tough patch with its largest shareholder, the Indian government, over resource allocation and direction, Bloomberg previously reported. The company was looking for a new leader after its previous boss stepped down prematurely in 2022, and in February hired infrastructure veteran Sanjiv Aggarwal to lead the firm, which has more than $4.9 billion in assets under management.

Spokespeople for NIIF and the Finance Ministry did not respond to requests for comment.

Other investors in NIIF include Abu Dhabi Investment Authority, AustralianSuper and Singapore’s Temasek Holdings Pte. Indian lenders HDFC Bank Ltd., ICICI Bank Ltd. and Axis Bank Ltd. are also investors. NIIF expects to raise more capital as co-investment commitments from its investors in this fundraising, according to one person familiar with the matter. NIIF has four funds across asset classes. Master Fund is the largest, which invests in infrastructure. Other funds include a private markets fund, a strategic opportunities fund that takes direct stakes in companies, and an Indo-Japanese private equity fund focused on environmental protection. Master Fund recently invested in iBUS Network and Infrastructure Pvt, an infrastructure solutions company. Other investments include renewable energy platform Ayana Renewable Power Pvt and IntelliSmart Infrastructure Pvt, a smart meter platform. Master Fund also owns Athaang Infrastructure Pvt, which is looking to sell some toll road assets, Bloomberg News reported.