National Investment and Infrastructure Fund (NIIF) has raised Rs 19,000 crore, equivalent to Rs 190 bn, in the first close of its NIIF Infrastructure Fund II, the largest first close the firm has recorded to date. The capital was secured from large global and domestic institutional investors and will be used to back long term projects. Investors included pension funds, sovereign wealth funds and insurance companies, the statement added.

NIIF is targeting three point two bn dollars in total commitments and indicated that some marquee investors are expected to allocate an additional $950 mn towards co investment opportunities. The firm noted that the co investment capacity is intended to provide flexibility for larger projects and to deepen investor participation. Analysts view the close as a sign of growing appetite for long duration infrastructure exposure in India.

Capital from Fund II will be deployed across core infrastructure sectors including energy, transport and digital infrastructure while the strategy expands into urban infrastructure and electric mobility. The fund manager signalled a focus on projects that can deliver stable cash flows and long term returns for institutional investors. The fund will also seek to leverage public private partnerships and municipal collaborations to scale urban projects.

NIIF has highlighted infrastructure investment trusts as an increasingly attractive route for institutional investors to monetise mature infrastructure assets. The firm said the new fund will offer a mix of direct investments and partnership structures to capture value across the asset lifecycle. Managers expect to proceed with further fundraising rounds and to accelerate deployment as pipeline opportunities materialise.