Neo Asset Management Closes First Round of Private Credit Fund at INR 2,000 Cr The fund offers capital backed by hard asset collateral and structured for regular coupon payments, targeting 25–30 investments in the range of INR 150–300 crore each.
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Neo Asset Management has announced the first close of its second flagship private credit fund—Neo Special Credit Opportunities Fund-II (NSCOF-II)—at INR 2,000 crore.
The alternative asset manager aims to raise a total corpus of INR 5,000 crore for the fund, which was launched three months ago. NSCOF-II is registered with SEBI as a Category II Alternative Investment Fund (AIF) and focuses on providing structured credit to mid-market, EBITDA-positive companies.
The fund offers capital backed by hard asset collateral and structured for regular coupon payments, targeting 25–30 investments in the range of INR 150–300 crore each. "With a strong pipeline in place, we look forward to deploying capital efficiently in Fund-II," said Puneet Jain, Co-founder and Chief Investment Officer, Neo Asset Management.
NSCOF-II has drawn strong interest from family offices, ultra-high net-worth individuals (UHNIs), and institutional investors. It builds on the successful track record of NSCOF-I, which raised INR 2,575 crore and fully deployed its capital across 23 transactions. Seven of those have already been exited, demonstrating early liquidity and performance.
Rubin Chheda, Managing Director and Head – Special Situations Strategy, highlighted the firm's niche focus: "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, Neo Asset Management manages more than INR 10,000 crore in alternative assets. The broader Neo Group, which counts Peak XV Partners, MUFG Bank, and Euclidean Capital as its backers, oversees over INR 40,000 crore in assets under advisory.
In a recent funding round, Neo raised INR 400 crore, led by MUFG Bank and Euclidean Capital, with continued backing from Peak XV, which had invested INR 300 crore in October 2023. The group is positioning itself as a leader in India's alternative asset management space.
