Neo Alternative Asset Managers said Tuesday it has marked the final close of its second private credit fund after exceeding its fundraising target.
The Neo Special Credit Opportunities Fund-II secured Rs 6,200 crore (around $654 million) in commitments, higher than the initial target of Rs 5,000 crore, the alternative asset management business of Neo Wealth and Asset Management said in a statement.
The fund’s limited partners include leading family offices and institutional investors, Neo said, without disclosing any names.
The fund is the second offering under the firm’s special credit opportunities strategy. It focuses on providing structured and flexible financing solutions to established Indian businesses. These include acquisition financing, refinancing, growth capital and special situations where conventional lending structures may not adequately address business requirements, according to the statement.
Neo said the fund’s investment approach focuses on businesses with established operating cash flows and employs structured transactions, collateral-backed security and prudent leverage to manage downside risk while seeking regular income and attractive risk-adjusted returns.
The maiden fund under the strategy, Neo Special Credit Opportunities Fund-I (NSCOF-I), closed in June 2024 with Rs 2,575 crore in commitments. Since inception, the strategy has recorded gross deployment exceeding 150% of its fund corpus, completed 35 investments and achieved 17 exits, the company said.
“As we move forward with NSCOF-II, our priority is to deploy capital judiciously and build a well-diversified portfolio of approximately 35-40 investments, with individual deal sizes generally ranging from Rs 150-500 crores,” said Puneet Jain, co-founder and chief investment officer, Neo Alternative Asset Managers.
“We remain focused on identifying compelling opportunities that align with our investment philosophy and deliver differentiated outcomes for our investors,” he added.
Founded in 2021, the Neo group has amassed nearly Rs 1.40 trillion in total client assets under management, with a presence across 17 cities in India and two international locations. Neo is backed by marquee global investors like Peak XV Partners, TVS Capital, Japanese lender MUFG, and New York-based Euclidean Capital.
Neo Alternative focusses on private equity, private credit and real assets. The firm manages over Rs 31,000 crore across four strategies.
