Global alternative asset management firm TPG, along with Singapore’s GIC and ICICI Bank, has signed definitive agreements to acquire a 100% stake in Aseem Infrastructure Finance Ltd (AIFL) from the National Investment and Infrastructure Fund (NIIF) and other shareholders. The acquisition is being executed through TPG Rise Climate, the firm’s dedicated climate investing platform, as part of its Global South Initiative launched in partnership with ALTÉRRA. ICICI Bank will hold up to a 5% stake in AIFL upon completion of the transaction, which is valued at around ₹5,000 crore by market estimates.
What Is Aseem Infrastructure Finance?
Aseem Infrastructure Finance Ltd is a Non-Banking Finance Company (NBFC) classified as an Infrastructure Finance Company (NBFC-IFC) by the Reserve Bank of India. Headquartered in Mumbai, the company was established in 2020 by NIIF, India’s sovereign-anchored alternative asset manager, to provide long-term debt financing for core infrastructure projects with a special focus on clean energy.
Over the past six years, AIFL has grown into one of India’s leading sustainable infrastructure debt financiers. The company has disbursed over ₹40,000 crore in loans across critical infrastructure sectors, funding more than 27 GW of renewable energy projects and supporting roughly 2,000 circuit kilometres (ckms) of power transmission infrastructure. These projects have cumulatively helped abate approximately 33 million tonnes of greenhouse gas emissions.
AIFL’s core focus areas include renewable energy, power transmission, roads, and electric mobility. The company provides financing across the project lifecycle from greenfield to operational assets. It also holds a 30.83% stake in NIIF Infrastructure Finance Ltd (NIIF IFL), another NBFC that focuses exclusively on operational infrastructure projects, creating synergies under the NIIF umbrella. As of March 2025, AIFL reported a net worth of ₹3,267 crore and carries a CARE AA+ rating with a Positive outlook.
The Deal: Structure and Value
TPG is acquiring AIFL through TPG Rise Climate, its climate investing platform, under the Global South Initiative. The consortium includes GIC, Singapore’s sovereign wealth fund, as a co-investor, while ICICI Bank will hold up to 5% of the equity. The current management team and loan book will continue under the new ownership, with plans to subsume the platform into a larger green financing initiative and inject further capital for growth.
The transaction involves the acquisition of a 100% stake from AIFL’s existing shareholders. Before the deal, NIIF Fund II held a controlling 59% stake, the Government of India directly owned 31%, and Japan’s Sumitomo Mitsui Banking Corp (SMBC) held the remaining 10%. All three are exiting as part of the transaction.
AIFL also holds a 30.83% stake in NIIF IFL. As part of the deal structure, NIIF will buy back this stake from the acquirers. Market sources estimate the total enterprise value at around ₹5,000 crore, with net proceeds of about ₹4,000 crore flowing to AIFL’s selling shareholders after accounting for the stake buyback. The valuation works out to roughly 1.35 times the company’s net worth. The transaction is subject to customary regulatory approvals and closing conditions.
Legal and financial advisory for the deal was provided by ICICI Securities and Shardul Amarchand Mangaldas for NIIF, while EY, Cyril Amarchand Mangaldas, Linklaters, and Trilegal advised TPG and GIC.
Who’s Who in the Consortium
TPG and TPG Rise Climate
TPG is a leading global alternative asset management firm founded in San Francisco in 1992. It manages over $306 billion in assets across private equity, impact, credit, real estate, and market solutions. TPG Rise Climate, launched in 2021, is the firm’s dedicated climate investing platform and part of TPG’s $32 billion global impact investing platform, TPG Rise. Former US Treasury Secretary Hank Paulson serves as TPG Rise Climate’s Executive Chairman.
The Global South Initiative, under which this acquisition falls, was launched at COP28 in Dubai in partnership with ALTÉRRA, the world’s largest private climate investment vehicle anchored by the UAE. The initiative is designed to scale climate solutions across emerging markets by offering catalytic capital to encourage private equity investments. It targets $2.5 billion in total commitments. This acquisition marks one of the largest early deployments under this initiative in India.
GIC
GIC is one of the world’s largest sovereign wealth funds, established in 1981 to manage Singapore’s foreign reserves. Headquartered in Singapore, GIC has a global team of over 2,300 people across 11 key financial cities and invests in more than 40 countries. It takes a long-term, disciplined approach across equities, fixed income, private equity, real estate, and infrastructure.
ICICI Bank
ICICI Bank Ltd is a leading private sector bank in India, with total assets of ₹23,72,531 crore as of March 31, 2026. The bank is listed on the BSE, NSE, and NYSE. Post acquisition, ICICI Bank will hold up to 5% equity stake in AIFL, reflecting its strategic interest in the green financing space.
Understanding NIIF’s Role
The National Investment and Infrastructure Fund (NIIF) is India’s first sovereign wealth fund, created in February 2015 following an announcement in the Union Budget 2015-16 by then Finance Minister Arun Jaitley. It is registered with SEBI as a Category II Alternative Investment Fund (AIF) and is managed by NIIF Limited (NIIFL). Headquartered in Mumbai, NIIF currently manages over $4.9 billion in assets across four strategies: Infrastructure (Master Fund), Private Markets, Growth Equity (Strategic Opportunities Fund), and Climate Investments.
The Government of India has committed a total of ₹60,000 crore to NIIF, with an additional ₹30,000 crore approved by the Cabinet in June 2026. NIIF’s role is to catalyse global capital into Indian infrastructure by building institutional-grade platforms that can attract long-term private investment.
AIFL was NIIF’s flagship debt platform for sustainable infrastructure, incubated under its Strategic Opportunities Fund (SOF). The government had committed ₹6,000 crore in equity to the two NIIF debt platforms AIFL and NIIF IFL as part of the National Infrastructure Pipeline (NIP). NIIF raised capital for AIFL in multiple rounds from NIIF, the government, and SMBC between 2020 and 2022.
For NIIF, this transaction represents a successful exit from a carefully built platform, demonstrating its ability to create and scale investable infrastructure assets that attract top-tier global capital. A similar approach has been seen in other NIIF exits, reinforcing the fund’s role as a bridge between public policy objectives and private capital markets.
Why This Deal Matters for India’s Green Financing
This acquisition comes at a critical juncture for India’s energy transition. The country has set an ambitious target of reaching 500 GW of non-fossil fuel energy capacity by 2030, up from around 200 GW currently. Achieving this goal requires massive capital deployment, estimated at over ₹30 lakh crore in renewable energy and associated transmission infrastructure alone over the next few years.
Specialised infrastructure finance companies like AIFL play a crucial role in bridging the financing gap. Traditional bank lending often falls short for long-gestation infrastructure projects due to asset-liability mismatches and sector exposure limits. NBFC-IFCs such as AIFL provide tailored debt solutions that commercial banks cannot always offer, particularly for greenfield renewable energy projects and transmission networks.
The entry of a global investor like TPG through its dedicated climate platform signals strong international confidence in India’s clean energy story. The acquisition also brings together distinct strengths: TPG’s global capital and climate expertise, GIC’s long-term patient capital approach, and ICICI Bank’s deep understanding of the Indian financial system. This combination could help scale AIFL’s lending capacity significantly and address the growing demand for climate finance in India.
For the broader infrastructure financing ecosystem, the deal validates the model of sovereign-anchored fund incubation followed by exit to private capital. NIIF’s ability to build AIFL from scratch, achieve strong asset quality and profitability, and then attract marquee global investors sets a precedent for similar infrastructure platforms in the country.
Key Takeaways
- TPG, along with GIC and ICICI Bank, has signed agreements to acquire 100% of Aseem Infrastructure Finance Ltd from NIIF and other shareholders for around ₹5,000 crore.
- AIFL is an NBFC-Infrastructure Finance Company (NBFC-IFC) established in 2020 by NIIF, headquartered in Mumbai.
- AIFL has disbursed over ₹40,000 crore in loans, funded more than 27 GW of renewable energy projects, and supported 2,000 ckms of power transmission, abating 33 million tonnes of greenhouse gas emissions.
- The acquisition is being made through TPG Rise Climate under its Global South Initiative, launched at COP28 in partnership with ALTÉRRA.
- NIIF is India’s first sovereign wealth fund, created in February 2015, registered with SEBI as a Category II AIF, and manages over $4.9 billion in assets.
- The Government of India has committed ₹60,000 crore to NIIF, with an additional ₹30,000 crore approved in June 2026.
