The second flagship private credit fund, the Neo Special Credit Opportunities Fund-II (NSCOF II), has closed at Rs. 2,000 crore as of right now, including the first closing as reported to SEBI, according to Neo Asset Management, an established alternative asset management company in India. The fund, which was introduced three months ago, aims to raise a total of Rs. 5,000 crore.
Neo's journey as an alternative investing platform centered on Private Credit and Real Assets attracted interest from Family Offices, Ultra High Net Worth Individuals (UHNIs), and Institutional Investors.
NSCOF-II is a Category II AIF registered with SEBI that offers customized lending options to businesses with EBITDA positives. All investments have regular coupons and are fully covered by at least two to three times the hard asset collateral as a strategy.
Neo Asset Management seeks to generate returns while adhering to its fund strategy. It anticipates effectively allocating resources in Fund-II. With 25–30 investments, each with a value between Rs. 150 and Rs. 300 crore, its goal is to build a well-diversified portfolio.
Neo Special Credit Opportunities Fund-I, the company's first private credit, raised Rs. 2,575 crore before closing in June 2024. Over the last 18 months, this fund has gross invested 100% of its capital across 23 carefully chosen, diversified investments, and has sold seven of them. Over the past two years, the team has assessed over 450 investments.
With support from MUFG Bank, Euclidean Capital, and Peak XV Partners, Neo Group is a cutting-edge wealth and asset management firm dedicated to creating India's premier Alternatives Asset Management platform. The Neo Group's Alternative Asset Management division in India, Neo Asset Management, oversees over Rs. 10,000 crore in AUM, makes investments in a range of asset classes, and generates steady cash flows and returns.
With a strong pipeline in place, we look forward to deploying capital efficiently in Fund-II. Our objective is to create a well-diversified portfolio with 25–30 investments, each ranging between Rs. 150–300 crore,” said Puneet Jain, Co-founder and Chief Investment Officer of Neo Asset Management.
“Mid-market special situations credit is an untapped opportunity, and Neo Asset Management is focused on this space. Our disciplined investment approach and risk framework have enabled us to deliver risk-adjusted returns,” said Rubin Chheda, Managing Director and Head – Special Situations Strategy at Neo Asset Management.
