As on date, three funds have been established by the Government under the NIIF platform and registered with SEBI as Category II Alternative Investment Funds and National Investment and Infrastructure Fund II (‘Strategic Fund’) is one of those three funds.
The other two funds are National Investment and Infrastructure Fund (or Master Fund) and NIIF Fund of Funds – I.
The objective of the National Investment and Infrastructure Fund II (‘Strategic Fund’) is to invest largely in equity and equity-linked instruments. The Strategic Fund will focus on the green field and brownfield investments in the core infrastructure sectors.
It will focus on the green field and brownfield investments in the core infrastructure sectors.
NIIF was set up in 2015 as an investment vehicle for funding commercially viable Greenfield, brownfield and stalled projects in the infrastructure sector. NIIF will invest in areas such as energy, transportation, housing, water, waste management and other infrastructure-related sectors in India.
The corpus of the fund is proposed to be around Rs.40,000 crore, with the government investing 49% and the rest to be raised from third-party investors such as sovereign wealth funds, insurance and pension funds, endowments etc.
NIIF’s strategy includes anchoring equity, quasi-equity and debt funds in partnership with investors targeting investments across the relevant sectors in India.