Neo Asset Management's credit opportunities fund garners Rs 2,575 crore

New Delhi, Jun 11 (PTI) Neo Asset Management on Tuesday announced the closure of its maiden special credit opportunities fund, mobilising Rs 2,575 crore from High Net Worth Individuals (HNIs) and multi-family offices.

Neo Special Credit Opportunities Fund -- a Category II AIF (Alternative Investment Fund) -- aimed to provide customised credit solutions to profitable companies. The fund targets to deliver 22-24 per cent gross Internal Rate of Return (IRR) to its investors.

In a short period of 15 months, the fund has already made 12 investments and seen 2 successful exits, the asset management firm said in a statement.

"We are overwhelmed by the client response in making our Special Credit Opportunities Fund I, the largest maiden credit fundraise in the country.

"We are also seeing tremendous response from clients in our infrastructure income strategy and our core credit strategies, which reflects a massive demand for yield and regular income from clients," Hemant Daga, CEO of Neo Asset Management, said.

Globally, private credit as an asset class is growing at 15-18 per cent per annum. Similarly, the Indian private credit industry is also rapidly growing and presents itself as a superior risk-adjusted asset class, delivering regular income to clients with significant downside protection.