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| Home > Investments > IIF > Overview |
| India Infrastructure Fund (IIF) |
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| Overview | Investment Objectives and Strategy | Target Sectors | Portfolio Companies |
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Creating Core Infrastructure Assets, Ensuring Sustainable Returns
India Infrastructure Fund (IIF) is a SEBI-registered domestic venture capital fund focused on long-term equity investments in a diversified portfolio of infrastructure projects. IIF has been sponsored by Infrastructure Development Finance Company Limited (IDFC), along with Citigroup Inc.(Citi) and India Infrastructure Finance Company Limited (IIFCL) as founder investors. The Fund is managed by IDFC Project Equity Company Limited, a subsidiary of IDFC. The establishment of IIF has received the strong support of the Government of India. The current size of IIF is INR 38 billion (USD 927 million1) with investor commitments from institutional investors in India, USA, Canada, Europe, Japan and the Middle-East.
Key Features
- India exposure
India is one of the world's largest and fastest growing economies, with a strong need to develop its core infrastructure. The economy is forecasted to grow at 6% to 8% p.a. in real terms over the coming five years, and to remain thereafter on a high-to-medium growth trajectory.
- Significant investment opportunities
The Government of India estimates a requirement of approximately USD 500 billion in new infrastructure investment over the next five years. Over 25% of this is expected to be funded by private sector capital and this represents a step change over levels in prior years. The pipeline of greenfield projects, together with growing investment opportunities in operating assets (as developers recycle invested capital), presents significant opportunities diversified across the infrastructure sector for IIF.
- Infrastructure exposure
Infrastructure assets generate stable and inflation-linked income over the long-term through regulated or contracted revenue streams, and high barriers to entry.
- Leading investment manager
IDFC is the leading and most experienced investment manager in Indian infrastructure. Through IDFC's extensive network and long-established position in the Indian infrastructure sector, IIF expects to have superior access to infrastructure investment opportunities in India.
- Early mover advantage
Currently most of the private sector capital is provided by domestic and international trade players and contractors. Investment via IIF affords the opportunity to gain an early position in the Indian infrastructure project market.
- Government support
The infrastructure sector and IIF both enjoy strong support of the Government of India. IIF is also part of the "India Infrastructure Financing Initiative" announced in the Union Budget of the Government of India in February 2007 - a collaborative effort to deploy approximately USD 5 billion in capital for infrastructure projects in India.
- Major Investor Commitments
Leading global institutional investors along with IDFC and Citi have together committed capital to IIF.
Investment Size
IIF's average investment size is USD 30-50 million per investment. The size and stake differs for each investment. Typically these investments result in significant minority to partnership (but not controlling) interest in its investee companies.
Geography
IIF invests in infrastructure sectors in India only.
Governance
IIF has in place a clear governance framework including an Investment Committee and an Advisory Board.
- The Investment Committee is responsible for reviewing and approving all investment proposals.
- The Advisory Board has oversight of conflicts, related party transactions, valuation of the portfolio, and investments that may not be covered by the scope/mandate of IIF.
1 As on commitment dates |
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