- National Investment and Infrastructure Fund (NIIF) is an Indian-government backed entity established in 2016 to provide long-term capital to the country’s infrastructure sector.
- The NIIF aims to maximize the economic impact mainly through infrastructure development in commercially viable projects such as greenfield and brownfield, including stalled projects.
- The Indian government has 49 per cent stake in NIIF with the rest held by foreign and domestic investors.
- NIIF got registered with SEBI as an Alternative Investment Fund (AIF).
- AIFs are private funds which are otherwise not coming under the jurisdiction of any regulatory agency in India. In India, AIFs are regulated by the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012.
- The Governing Council of NIIF is chaired by the Union Finance Minister.
- NIIF currently manages three funds each with its distinctive investment mandate.
- Master Fund
- It primarily invests in operating assets in core infrastructure sectors such as transportation and energy.
- Fund of Funds
- This fund invests in funds managed by fund managers in infrastructure and associated sectors. Sectors of focus include Green Infrastructure, Mid-Income & Affordable Housing, Infrastructure services and allied sectors.
- Strategic Fund
- This fund is aimed at growth and development-stage investments in large scale projects/companies in a broad range of sectors of economic and commercial importance, which are likely to benefit from India’s growth trajectory over the medium- to long-term.
- Master Fund
Why in News?
- The National Investment and Infrastructure Fund is planning to launch its second fund-of-funds (FoF) to raise $1 billion.