A Privately Placed InvIT is an infrastructure trust that raises capital from a focused group of institutional investors through a private placement memorandum without a public retail offering.
An InvIT whose units are offered exclusively on a private placement basis to eligible institutional investors under SEBI regulations, without issuing an offer document to the public.
Instead of selling units to thousands of retail investors on the open market, the sponsor partners with 5 to 20 large global institutions (like pension funds or sovereign funds) who write large checks to fund the trust.
A sponsor negotiates directly with two Canadian pension funds and a domestic infrastructure fund. The three institutions agree to fund ₹2,500 Crore into a privately placed InvIT holding a portfolio of telecom towers and solar assets.
Privately placed InvITs enjoy greater asset flexibility: they can hold higher proportions of under-construction assets if investors agree, and leverage can extend up to 70% of asset value subject to credit ratings.
Institutional investors in a private InvIT often demand board representation, customized information rights, and specific vetoes over asset acquisitions.
Ideal for mid-sized sponsors who want significant equity capital quickly with lower compliance overhead and without the volatility of public retail markets.