NIIF secures $750 million for second private markets fund amid India PE/VC momentum

The National Investment and Infrastructure Fund has raised $750 million toward its $1 billion target for Private Markets Fund II, with commitments from domestic and multilateral institutions. The fund-of-funds will target mid-market private equity and venture capital opportunities across energy transition, healthcare, and technology sectors.

The National Investment and Infrastructure Fund (NIIF) has secured commitments of $750 million for its second private markets vehicle, Private Markets Fund II (PMF II), which has a target corpus of $1 billion . The fund is anchored by the Government of India, which has committed approximately 49% of the corpus, with additional participation from multilateral institutions including the Asian Infrastructure Investment Bank and the New Development Bank, alongside institutional investors from Japan and India . NIIF is a sovereign-backed alternative asset manager established in 2015 to facilitate infrastructure and private capital investment in India. PMF II follows a multi-manager strategy, investing primarily in third-party growth equity and venture capital funds focused on the mid-market segment, with flexibility for direct co-investments . Key investment themes include energy transition, healthcare, manufacturing, technology and startups, and financial inclusion .

The fund is the successor to NIIF's $600 million Private Markets Fund I, which is now fully invested across nine Indian PE and VC funds and has realised approximately 40% of its investments . According to NIIF managing partner Anand Unnikrishnan, the vehicle positions the institution as a gateway for global investors seeking exposure to India's mid-market private equity opportunities, which can be difficult to access directly .

This development matters as India's private equity and venture capital market demonstrates resilience, with deal value reaching $207 billion between 2021 and 2025 and exits more than doubling to approximately $120 billion over the same period .

The country now accounts for about 21% of Asia-Pacific private equity deployment, up from 12% in 2015-19, driven by structural growth tailwinds including entrepreneurial talent, economic momentum, and rising domestic consumption . For the financial services industry, PMF II represents deepening domestic institutional participation in alternative assets, with implications for fund managers, portfolio companies, and limited partners seeking India exposure. The fund's focus on mid-market opportunities addresses a segment where global investors often lack direct access, potentially catalysing capital formation across priority sectors. As fundraising globally remains selective, NIIF's ability to secure commitments signals sustained investor confidence in India's private markets trajectory .