NIIF MASTER FUND
NIIF FUND OF FUNDS
Private Equity through
third party managers
Direct Private Equity
NIIF Master Fund
The NIIF Master Fund is the largest India-focused infrastructure fund.
The Fund has been established with an aim to participate in the robust Indian infrastructure story which is projected to see investments of close to USD 1.5 trillion over the next decade. The fund’s strategy is to invest in high quality businesses / assets across different core infrastructure sectors.
Our Investment Strategy
In order to construct the right portfolio from a risk-reward standpoint, the fund would invest in a mix of operating as well as greenfield opportunities. We aim to do so by building scalable platforms across different sectors either by seeding our own management teams or by partnering with reputed and like-minded operating partners.
Given our strong governance practices and understanding of the market, we view ourselves as a preferred partner to operating / financial partners looking to invest in Indian infrastructure. These partnerships have allowed us to participate in opportunities beyond our current scale and size.Our Differentiators
Our understanding of the market
We are an India-focused fund with considerable experience in investing and operating infrastructure assets. Our local presence has allowed us better coverage and understanding of opportunities.
Relationships with relevant stakeholders
Given our parentage, we have been able to establish necessary relationships and have a continued dialogue with all the relevant stakeholders including regulatory bodies, lenders, line ministries.
Comprehensive investing solution
By working with our investors and financial partners, we are able to consolidate investments for transactions that require a sizeable equity commitment.
NIIF FUND OF FUNDS
The largest India-dedicated Fund of Funds programme globally – NIIF Fund of Funds is focused on building a Private Equity portfolio across diversified sectors and investment strategies.
The Fund of Funds (FoF) has a rigorous manager selection process aimed at identifying the best-in-class managers across sectors and investment strategies. FoF makes significant commitments, including providing anchor capital, to managers enabling them to attract further institutional capital for their funds. FoF aims to provide its investors a well-diversified exposure to sectors that benefit from India’s demographics, rising incomes and discretionary spending, and a strong policy framework.
FoF Fund I anchored by the GOI has received commitments from multilateral institutions like Asian Infrastructure Investment Investment Bank (AIIB), Asian Development Bank (ADB) and New Development Bank (NDB), making it the largest India-dedicated Fund of Fund globally.
Our Investment Strategy
Our primary objective is to build a portfolio of best-in-class managers deploying complementary investment strategies that deliver strong risk-adjusted returns to our investors. Our proprietary manager selection framework identifies:
Fund managers who have executed the investment strategy previously and are raising successor funds
Successful fund managers developing new investment strategies
Emerging fund managers who have an ability to scale their funds with backing from large institutional investors
Experienced teams that have spun out of successful fund managers and are establishing new funds in niche strategies
Our assessment of the fund managers’ track record includes an evaluation of what they have achieved (i.e. financial outcomes) and how those outcomes have been achieved (i.e. governance). Our strong commitment to Environmental, Social and Governance (ESG) standards requires our fund managers to adopt and apply our best-in-class ESG standards to their funds and their portfolio companies.
NIIF STRATEGIC OPPORTUNITIES FUND
The NIIF direct private equity fund, The NIIF Strategic Opportunities Fund (SOF) is the largest India-focused private equity fund.
SOF has been established with the objective to provide long-term capital to high-growth future-ready businesses in India. The fund’s strategy is to build a portfolio of large entrepreneur-led or professionally managed domestic champions and unicorns. SOF seeks to drive accelerated value creation, leveraging the NIIF ecosystem and its unique network of shareholders and partners.
OUR INVESTMENT STRATEGY
SOF targets to invest in sectors that benefit from the changing business landscape in India as well as demonstrating intrinsic structural growth; excluding commoditized sectors, sectors lacking ESG orientation, and core infrastructure (which is invested by the NIIF Master Fund). Segmental leadership or leadership potential and sound corporate governance standards are important filters for portfolio company selection within SOF’s target sectors.
The fund invests through both active minority stakes and control-oriented/incubation deals. When investing in minority positions, SOF seeks to partner with entrepreneurs with a strong track record of value creation and robust governance and having a collaborative mindset. In control-oriented deals SOF aspires to invest in businesses managed by best-in-class management teams.
SOF is a classic private equity fund that is commercially and professionally managed by an investment team with extensive private equity investing experience across several cycles. The team will leverage NIIF’s unparalleled networks and scale in India, and its strong governance frameworks, thus targeting significant value creation beyond its capital at work.
SOF will target to create domestic champions, with large-ticket growth capital and through the institutionalization of business leadership, financial discipline, and operational excellence. For SOF’s investors, the positioning of its portfolio companies as segment leaders should provide multiple options for exit at premium valuations.
DEBT -FINANCING PLATFORM
With significant investments in Infrastructure sector in coming years in India, there is a need for specialized infrastructure financing institutions providing debt finance to the sector at scale. We aim to build an AUM of over USD 10 billion over the next 5-6 years across greenfield, brownfield and refinancing of infrastructure debt through this investment.
SOF is building a scalable integrated financial services platform to fill the gap via two complementary entities - NIIF Infrastructure Finance Limited (NIIF IFL) and Aseem Infrastructure Finance Limited (AIFL), both being non-banking finance companies. The two together constitute the NIIF Infrastructure Debt Financing Business.
SOF has invested equity at scale across these two companies to enable them to be one of the largest players in the Infrastructure Debt Financing space. We operate with strong management teams, with robust governance processes including Environment, Social and Governance (ESG) norms as part of their lending processes.
SOF incubated AIFL in 2020 to complement NIIF IFL and create an Infrastructure financing company that can lend across the project life cycle.
AIFL has since built out a strong management team led by Virender Pankaj, an infrastructure debt industry veteran and has already built a diversified portfolio across with an ambition to be among the largest players in the sector.
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SOF has invested in Manipal Hospitals with the objective of providing capital at scale which is a crucial requirement for the growth of any entity in this sector. SOF’s investment in Manipal Hospital is one of the largest PE investments in the country by a domestic fund.
Broader outreach of quality healthcare services across the country continues to be a critical requirement in India. Manipal Hospitals is one of the leading hospital chains in the country, focused on tertiary and quaternary care. It is promoted by Dr Ranjan Pai, and the management team is led by Dilip Jose, a healthcare industry veteran of over 2 decades. It has built a strong foundation over decades in providing quality medical services and is well placed to now expand its services on a pan India basis.
SOF’s investment in Manipal Hospitals has enabled the company to consolidate with Columbia Asia Hospitals, another leading chain of hospitals in the country. Post consolidation, Manipal Hospitals has over 7,200 beds across 26 hospitals in 14 key Tier I/II markets in India – with a potential to nearly double revenues in the next 5 years. It will provide opportunities for the company to tap into large markets, expand related businesses such as pharmacy and diagnostics and also explore opportunities in the PPP segment.