FoF-I will investment in approx. 10 portfolio funds as the anchor or significant investor in private equity funds managed by experienced fund managers. Investment focus is green infrastructure, social infrastructure (healthcare, education), mid-income and affordable housing, infrastructure services, agribusiness, consumer business, financial services, technology and industrials (with emphasis on job creation and supporting small and medium enterprises). FoF-I will work with fund managers with strong track record, experience of investing in India, and sound investment strategy, with distinct advantage over competing funds in deal sourcing, robust processes and high level of adherence to environmental, social and governance aspects.

NDB’s investment in FoF-I will support GoI’s vision for sustainable socio-economic growth by supporting investments in key areas of economy and catalyzing private sector investments.
The positive impacts of the Projects include: (i) mobilizing resources for infrastructure and sustainable development projects in India; (ii) supporting private capital investments in India’s infrastructure and other key sectors, to reduce equity financing gap in the Indian economy; and (iii) promoting socio-economic growth and development in India through contributing to Indian Government’s initiative in promoting equity investment. NDB’s investment through FoF-I and its portfolio funds will be made in investee companies which can leverage this investment for mobilizing additional capital through borrowing from banks and capital markets. Thus, the Bank’s investment will have significant multiplier effects and mobilize additional capital. Depending on the sectoral distribution of portfolio funds and investee companies, FoF-I’s investments may be aligned with SDGs including zero hunger (SDG 2), good health and well-being (SDG 3), quality education (SDG 4), clean water and sanitation (SDG 6), affordable and clean energy (SDG 7), industry, innovation and infrastructure (SDG 9) and climate action (SDG 13).

Project is being implemented by NIIF.

The Project is Category “FI-B” in line with NDB’s Environment and Social Framework (ESF). The portfolio funds will have E&S screening, appraisal, and supervision of investee companies as per Fund Level – E&S Management System (FL-ESMS), which will be aligned with the NIIF’s E&S management policy, E&S management system principles (ESMS Principles), and E&S management system and procedures (ESMS&P) for FoF-I. This alignment will meet the requirements of the country system and NDB’s ESF.