Neo Asset Management Raises Rs 2,000 Crore for Private Credit Fund

New Delhi, Apr 8 (PTI) Neo Asset Management on Tuesday announced the first closure of its second flagship private credit fund, mobilising Rs 2,000 crore from family offices, ultra-high net worth individuals and institutional investors.

Launched three months ago, the fund -- the Neo Special Credit Opportunities Fund-II (NSCOF II) -- is targeting a total corpus of Rs 5,000 crore, Neo Asset Management said in a statement.

The fund, a Sebi-registered Category II AIF (Alternative Investment Fund), provides credit solutions to EBITDA positive companies. It witnessed interest from family offices, ultra-high net worth Individuals (UHNIs) and institutional investors.

The company said all investments are fully covered with at least 2-3 times hard asset collateral and bear regular coupons.

"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," Puneet Jain, CIO and Co-Founder of Neo Asset Management, said.

Before this, Neo's first private credit, Neo Special Credit Opportunities Fund-I, closed in June 2024, raising Rs 2,575 crore. This fund deployed 100 per cent of its capital across 23 carefully curated diversified investments and exited from 7 of these investments, over the past 18 months.

"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," Rubin Chheda, MD & Head – Special Situations Strategy at Neo Asset Management, said.

Currently, Neo Asset Management, the India-focused Alternative Asset Management arm of the Neo Group, manages more than Rs 10,000 crore of AUM. Neo Group is a new-age wealth and asset management company, backed by Peak XV Partners, MUFG Bank, and Euclidean Capital.