Neo Special Credit Opportunities Fund-II Marks Significant First Close

Neo Asset Management, a prominent player in the field of Alternative Asset Management in India, has proudly announced the first close of its second flagship private credit fund – the Neo Special Credit Opportunities Fund-II (NSCOF II), now standing at Rs 2,000 crore as reported to SEBI. Launched just 3 months ago, the fund is on a path to reach a total target corpus of Rs 5,000 crore.

The fund has attracted substantial interest from Family Offices, Ultra High Net Worth Individuals (UHNIs), and Institutional Investors, paving the way for Neo to become a leading alternative investment platform with a focus on Private Credit and Real Assets.

Investment Strategy of NSCOF-II

NSCOF-II is registered as a Category II AIF with SEBI and is specifically crafted to offer tailored credit solutions to companies that are EBITDA positive. This strategy ensures that all investments are secured with a minimum of 2-3 times hard asset collateral and provides regular coupon returns.

Optimising Capital Deployment

Neo Asset Management is committed to following its fund strategy closely, aiming to provide attractive returns. The firm is keen on effectively deploying capital within Fund-II, with the goal of establishing a diversified portfolio comprising 25-30 investments, each valued between Rs 150-300 crore.

Success of Previous Fund

The inaugural private credit fund, Neo Special Credit Opportunities Fund-I, concluded in June 2024, successfully raising Rs 2,575 crore. This fund has fully deployed 100% of its capital across 23 meticulously selected diversified investments and has exited 7 of these investments over the last 18 months. In the past two years, the team has assessed over 450 potential investments.

About Neo Group

Neo Group stands as a modern wealth and asset management firm, supported by notable partners such as Peak XV Partners, MUFG Bank, and Euclidean Capital. The group is dedicated to establishing India’s foremost Alternatives Asset Management platform. The India-focused Alternative Asset Management division of Neo Group, Neo Asset Management, is responsible for managing assets exceeding Rs 10,000 crore, investing across a variety of asset classes while ensuring stable cash flow and returns.