IDFC Alternatives has received binding commitment of $644 million for its second India-focused core infrastructure fund — India Infrastructure Fund 2.
This includes $64 million from IDFC and $580 million from abroad.
In addition to fund commitments, the investors have set aside an additional capital towards co-investment opportunities. The fund will close and make investments once the domestic regulatory approvals are received.
$2.8 b AUM
IDFC Alternatives is a 100 per cent subsidiary of IDFC and adviser and investment manager of IDFC-sponsored funds across infrastructure, private equity and real estate. It is one of India’s largest multi-asset class fund managers with assets under management of about $2.8 billion.
IDFC commenced fund raising in January to mop up a total of $1 billion.
The investors in IIF 2 comprise global institutional investors from North America, Europe and the UK.
M.K. Sinha, Managing Partner and Chief Executive Officer, IDFC Alternatives, said there are substantial commitments from IIF 1 investors who have reaffirmed their faith in IDFC as an infrastructure fund manager and in India’s potential as an attractive investment opportunity in the infrastructure space.
IIF 2 succeeds IDFC’s debut infrastructure fund (IIF 1), which closed in June 2009 with a fund size of $927 million from Indian and international institutional investors. As of June 30, IIF 1 had invested 84 per cent of its total capital across 15 portfolio companies.