Neo Asset Management has successfully closed its first special credit opportunities fund, raising Rs 2,575 crore from high-net-worth individuals (HNIs) and multi-family offices. This fund, named the Neo Special Credit Opportunities Fund, aims to provide customized credit solutions to profitable companies that face challenges in securing financing through traditional channels. The fund targets a gross internal rate of return (IRR) of 22-24% for its investors.
Who Invested in the Fund?
The fund received strong support from HNIs and multi-family offices. This significant backing highlights the confidence in Neo Asset Management’s approach to private credit and real asset investments. Hemant Daga, CEO of Neo Asset Management Pvt Ltd, expressed gratitude, stating, “We are overwhelmed by the client response in making our Special Credit Opportunities Fund I the largest maiden credit fund raised in the country. We also see tremendous response from clients in our infrastructure income strategy and core credit strategies, reflecting a massive demand for yield and regular income from clients.”
Fund’s Achievements So Far
In its first 15 months, the Neo Special Credit Opportunities Fund made 12 investments and achieved two successful exits. These investments are fully collateralized, providing extra security beyond the operating cash flows of the companies involved. Nitin Jain, Founder and Chairman of Neo Wealth and Asset Management, emphasized the importance of private credit in India’s growing economy, stating, “As India progresses towards becoming the world’s 3rd largest economy, private credit will play a pivotal role in meeting the industry’s patient and flexible capital requirements.”
Leading Alternative Asset Manager
Neo Asset Management is positioning itself as a leading alternative asset manager in India, focusing on private credit and real assets. The company recently raised USD 35 million from Peak XV Partners (formerly Sequoia India) as growth capital. Neo advises over 1,500 clients with assets under advice (AUA) amounting to INR 30,000 crore and assets under management (AUM) exceeding INR 6,000 crore.
The Indian private credit market, growing at an annual rate of 15-18%, offers a robust risk-adjusted asset class that provides regular income with significant downside protection. Hemant Daga highlighted the company’s expertise, saying, “At Neo Asset Management, we strive to leverage our multi-decadal institutional expertise to provide innovative alternative solutions to our clients.”
Neo Asset Management’s successful closure of its first special credit opportunities fund marks a significant milestone, underscoring its commitment to providing innovative financial solutions and its strong position in the Indian alternative investment market.
