NIIF plans to raise $2 billion private credit fund, India's largest so far

The government-backed National Investment & Infrastructure Fund (NIIF) is planning to raise a $2 billion private credit fund, which would be India’s largest such vehicle, according to its chief executive officer Sanjiv Aggarwal.

 

The fund, anchored by the Indian government, is in early discussions with sovereign investors to secure participation.

 

“It is anchored by the Indian government and conversations are happening with a few sovereigns to see if they will come in,” said Aggarwal during a panel at the IVCA (Indian Venture and Alternate Capital Association) Conclave in Mumbai on Wednesday.

 

The fund will focus on performing credit, aiming to channel international capital into the Indian economy.

 

“The objective is to mobilise international capital, and to invest it in the Indian economy. We want to offer large co-investments to our LPs because we want to do large deals and LPs who are our clients, also want to do large deals,” said Aggarwal.

 

NIIF, established in 2016, operates across four asset classes including infrastructure and a climate business operating in the energy transition space.

 

NIIF is 49 per cent owned by the Indian government, while 51 per cent is owned by sovereign wealth and pension funds such as Canada’s Ontario Teachers’ Pension Plan (OTPP), Australia’s AustralianSuper, the UAE’s Abu Dhabi Investment Authority (ADIA) and Singapore’s Temasek.

 

“We are quasi-sovereign, but we are fully commercial, and that’s mandated to us by the government as well,” said Aggarwal.

 

He also said NIIF is setting up India’s largest single-location data centre in Navi Mumbai, with a capacity of 350 megawatts. The fund will soon announce a contract with a hyperscaler, he added.