Private credit and real assets-focused investment firm Neo Asset Management has achieved the first close of its second flagship private credit fund – the Neo Special Credit Opportunities Fund-II (NSCOF II) – at $232.8 million (Rs 2,000 crore), it said in a press release.
Launched three months ago, the fund aims to raise a total corpus of Rs 5,000 crore.
“Private credit in India faces a persistent demand-supply mismatch, and Neo is a contributor to bridging this gap by offering structured capital solutions to quality borrowers. With NSCOF-II, we aim to deepen our presence in this space and continue delivering stable, predictable cash flows and differentiated opportunities to our investors,” Hemant Daga, CEO, Neo Asset Management, said in the release.
Backed by family offices, ultra-high-net-worth individuals and institutional investors, NSCOF-II is a SEBI-registered Category II AIF seeking to provide credit solutions to EBITDA-positive companies. All investments are fully covered with at least 2-3 times hard asset collateral and bear regular coupons.
The firm plans to make 25-30 investments from Fund II, each ranging from Rs 150-300 crore.
Neo’s first private credit strategy, Neo Special Credit Opportunities Fund-I, closed in June last year at Rs 2,575 crore. It has fully deployed capital across 23 investments and has made 7 exits over the past 18 months.
Asset management company Neo Group is backed by Peak XV Partners, MUFG Bank, and Euclidean Capital. Its India-focused asset management arm Neo Asset Management has over Rs 10000 crore in AUM, investing across various asset classes.
