The Asian Infrastructure Investment Bank (AIIB) has approved the commitment of up to USD25 million to Lok Capital IV LLC (the Fund) – a closed-end private equity fund experienced in impact investment – with a cap of 20 percent of the Fund’s total capital commitment and a co-investment sleeve of up to USD5 million.
This is AIIB’s first purely impact-focused investment in India, expanding the diversification of AIIB’s portfolio and complementing its partnerships with more traditional private equity funds. With a target size of up to USD200 million, the Fund invests in early and growth stage companies and has raised commitments of around USD100 million to augment financing for infrastructure and related services across the market. Specifically, the Fund will look at investments that promote development impacts, reduce greenhouse gas emissions as well as incorporate gender interventions across the investment process
To enable the Fund Manager to reach its fundraising goal, AIIB will play a key role in mobilizing additional capital through its investment and support to scale up various tech-enabled infra business models in support of projects that align with the Bank’s mission to finance Infrastructure for Tomorrow, and its thematic priorities, namely Green Infrastructure, Technology-Enabled Infrastructure and Private Capital Mobilization.
“Green and technology-enabled Infrastructure in India is at a crucial juncture, and it is essential to mobilize capital towards new, innovative and scalable businesses across the financial services, climate, health, and agriculture sectors and value chains”, said Dr. Urjit Patel, AIIB’s Vice President for Investment Operations (Region 1). “Through this project, AIIB has the opportunity to work with Lok Capital, one of the most established impact-focused investment managers in the Indian market. This partnership will also contribute to institutionalizing various new initiatives towards impact investing in infrastructure-related sectors.”
The investment strategy of the Fund is well aligned with the mission of the Bank to support sustainable infrastructure, as set out in its Corporate Strategy. AIIB unlocks new capital, new technologies and new ways in which to address various development matters in emerging Asian market context.
Since 2017, AIIB has committed over USD9.9 billion through 43 projects in India, covering the water, energy, urban, transport and healthcare sectors across the market.
More information about the project can be found here.
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank whose mission is financing the Infrastructure for Tomorrow—infrastructure with sustainability at its core. We began operations in Beijing in January 2016 and have since grown to 106 approved members worldwide. We are capitalized at USD100 billion and Triple-A-rated by the major international credit rating agencies. Collaborating with partners, AIIB meets clients’ needs by unlocking new capital and investing in infrastructure that is green, technology-enabled and promotes regional connectivity.