NIIF manages over $4 billion of capital commitments across three funds, each with its distinct investment strategy.
NIIF announced on Tuesday that Australia’s largest superannuation fund, AustralianSuper, and Canada’s largest single-profession pension plan, Ontario Teachers’ Pension Plan, have each signed agreements for investments of up to $1 billion with the NIIF Master Fund. The agreements include commitments of $250 million each in the Master Fund and co-investment rights of up to $750 million each in future opportunities alongside the fund.
AustralianSuper and Ontario Teachers’ will also become shareholders in National Investment and Infrastructure Fund, NIIF’s investment management company. Domestic investors HDFC Life and Kotak Mahindra Life Insurance have further committed `60 crore in the third round, NIIF said in a statement.
This marks the third close of the NIIF Master Fund. AustralianSuper and Ontario Teachers’ will now join the Government of India (GoI), Abu Dhabi Investment Authority (ADIA), Temasek, HDFC Group, ICICI Bank, Kotak Mahindra Life Insurance and Axis Bank as investors in the fund.
NIIF manages over $4 billion of capital commitments across three funds, each with its distinct investment strategy. The funds have investment mandates to invest in infrastructure assets and related businesses that are likely to benefit from the long-term growth trajectory of the Indian economy.
“With this, NIIF Master Fund becomes the largest infrastructure fund in India with assets under management of over $1.8 billion and a co-investment pool of $2.5 billion, which will enable the fund to invest at the scale required for the large infrastructure requirements in India. The fund invests in equity capital in core infrastructure sectors in India with a focus on transportation, energy and urban infrastructure. The Master Fund has a tenure of 15 years and is denominated in Indian Rupees to suit the requirements of the infrastructure sector,” NIIF stated.
Mark Delaney, chief investment officer with AustralianSuper, said India’s burgeoning infrastructure market is among the largest in Asia, which presents many opportunities for investment. “We are pleased to have entered into this agreement with the NIIF Master Fund and to be shareholders of National Investment and Infrastructure Fund and look forward to participating in a strong pipeline of projects across a range of sectors,” he said.
Ben Chan, regional managing director, Asia Pacific of Ontario Teachers’, said a commitment to NIIF will substantially bolster Ontario Teachers’ presence in India, providing them with on-the-ground market insights and capabilities to be well-positioned in a large market with significant expected growth.