NIIF Secures $2 Billion for Second Infrastructure Fund

The National Investment and Infrastructure Fund (NIIF) secured $2 billion in the first close of its NIIF Infrastructure Fund II on August 31, 2026. This initial raise represents over 60% of the fund's $3.2 billion target, with the organization planning to raise the remaining $1.2 billion over the next 18 months. Anchored by the Government of India, the fund is backed by domestic institutional investors and global entities including Temasek, CPP Investments, AustralianSuper, the Ontario Teachers’ Pension Plan, and a subsidiary of the Abu Dhabi Investment Authority.

Managing partner Vinod Giri expects approximately $600 million of the remaining capital to originate from Europe, Australia, Korea, and Japan. NIIF also intends to mobilize $950 million in co-investment capital for specific transactions. The fund will maintain its focus on energy, transportation, and digital infrastructure—including a planned push into data centers—while expanding its mandate to include electric mobility and urban infrastructure.

This second vehicle follows a first infrastructure fund that raised $2.34 billion and achieved a distributed to paid-in capital (DPI) of nearly 50%. The fundraising coincides with a broader increase in Indian government infrastructure spending, which reached 12.2 trillion rupees for fiscal 2026-27. Despite rupee volatility linked to the Iran war, NIIF reports strong investor appetite driven by India's policy stability and rapid urbanization.