New Delhi, March 11 -- The National Investment and Infrastructure Fund (NIIF) has secured commitments of up to $750 million (around Rs 6,900 crore) for its second private markets vehicle, the sovereign-anchored alternative asset manager said on Tuesday.
The Private Markets Fund II (PMF II) has a target size of $1 billion and is the successor to NIIF's first private markets vehicle that raised $600 million and is now fully invested. That fund has realised about 40% of its investments and deployed capital across nine Indian private equity and venture capital funds, which have backed more than 60 portfolio companies, NIIF said.
The new fund is anchored by the Indian government, which accounts for roughly 49% of commitments secured so far. It has also drawn repeat support from existing investors in the first fund, including the Asian Infrastructure Investment Bank and the New Development Bank, as well as commitments from institutions in Japan and India.
NIIF described PMF II as a multi-manager vehicle that will invest primarily in third-party growth equity and venture capital funds, with flexibility for direct co-investments.
NIIF said the new fund's strategy targets India's mid-market segment, which is often harder for global limited partners to access directly. Key themes include energy transition and climate action, healthcare, manufacturing, technology and start-ups, and financial inclusion.
Anand Unnikrishnan, managing partner for private markets at NIIF, said the fund positions the manager as a gateway for global investors. "India's private markets represent a compelling opportunity for investors, especially in the mid-market PE and VC segment," he said.
NIIF manages more than $5 billion in equity commitments across four strategies - infrastructure, private markets, growth equity and climate investments.
The firm, established in 2015 and backed by the government in partnership with global institutions, has said it aims to double assets under management to around $10 billion in the next two to three years through successor funds, including a larger infrastructure-focused Master Fund II.
PMF I, which closed its final commitments around 2020-2021, backed PE firms such as Multiples PE, Eversource Capital, InvAscent, Arpwood and Lighthouse. It also backed a VC fund managed by YourNest and a real estate fund managed by HDFC Capital. The fund focused on sectors including sustainability, healthcare and technology. It has a 15-year investment period extending through 2034.
The PMF II announcement comes as India's private equity and venture capital market shows resilience, with investment activity rebounding in recent months amid domestic economic growth and interest in technology, climate and consumer themes. Fundraising overall moderated in 2025 compared with peak years but exits via public markets and strategic sales have supported liquidity.
NIIF said it expects to reach the $1 billion target for PMF II and continues to see interest from investors in Europe and Japan.
Published by HT Digital Content Services with permission from VC Circle.