April 8, 2025: Neo Asset Management an alternative Asset Management arm of Neo Group today announced that it has successfully closed its second flagship private credit fund, Neo Special Credit Opportunities Fund-II (NSCOF-II), at Rs 2,000 crore, the alternative asset manager. With this fresh capital it aims to create a well-diversified portfolio with 25–30 investments.
NSCOF-II—a SEBI-registered Category II Alternative Investment Fund (AIF)—aims which was launched three months ago, to garner a corpus of Rs 5,000 crore. The fund provides structured credit to mid-market, EBITDA-positive companies, backed by hard asset collateral and regular coupon payments.
“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.
The first close attracted investments from a mix of family offices, ultra-high net-worth individuals (UHNIs), and institutional investors. This round of investment follows the success – Neo’s debut private credit fund, NSCOF-I, which closed in June 2024 after raising Rs 2,575 crore.
Neo Asset Management Deploys 100% of its Capital across 23 Transactions
According to the company, providing credit and fixed income solutions to client needs across various asset classes in India. The fund deployed 100% of its capital across 23 transactions and has already exited from seven.
Rubin Chheda, Managing Director and Head – Special Situations Strategy at Neo Asset Management, said “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.”
Currently, the firm manages over Rs 10,000 crore in alternative assets. The broader Neo Group, which counts Peak XV Partners, MUFG Bank, and Euclidean Capital among its backers, manages more than Rs 40,000 crore in assets under advisory and aims to build one of India’s leading platforms in alternatives.
Neo raised Rs 400 crore led by MUFG Bank and Euclidean Capital, in a recent funding round, with continued participation from Peak XV, which had invested Rs 300 crore in October 2023.
