MUMBAI: Neo Alternative Asset Managers has reached the first close for its ₹5,000 crore infrastructure income fund, as it doubles down on operating road and renewable assets backed by long-term contracts.
“Including the first close, we have raised ₹1,500 crore till now for the fund,” Abishek Goel, managing director and head of NAAM’s infrastructure and real assets fund told Mint.
Neo Infra Income Opportunities Fund II, as the fund is called, will invest in operational, revenue-generating road and energy assets supported by long-term contracts with government counterparties, Goel said. “The strategy allocates the majority of capital to operating assets, with the remainder directed toward opportunities such as privately listed infrastructure investment trusts.”
The fund will follow a similar strategy to NAAM’s first infra income fund, which invested in six hybrid annuity model road packages of the National Highways Authority of India with a combined length of around 250 km, one 27.5 km build-operate-transfer asset, and one 430 MWp utility-scale solar platform.
In addition, 5-10% of the new fund will be invested in ancillary opportunities such as battery energy storage system projects, Goel said, adding that the fund is targeting an internal rate of return of 18-20%, and is expected to close the remaining ₹3,500 crore within the next 12 months.
NAAM has onboarded about 30 limited partners so far for the fund and expects to add more as additional commitments come in, Goel said. The firm did not disclose the names of investors.
“Our approach combines deep sector expertise with rigorous asset selection and active asset management, enabling us to build a portfolio that balances yield, quality, and longevity,” he added.
Currently, NAAM, part of the Neo Group, oversees more than ₹25,000 crore in assets under management and is looking to scale its infrastructure investments.
“Infrastructure investments present a huge opportunity for us. We are looking to scale up our infra division to a ₹1 lakh crore (trillion) practice in the next five to seven years,” Neo Group’s co-founder Hemant Daga told Mint.
“At NAAM, our focus remains on disciplined capital allocation and execution excellence. Our experience across roads and renewable assets, combined with a strong pipeline of opportunities, positions us well to scale this strategy while maintaining consistency in performance and risk management,” he added.
The wealth and asset management firm caters to high-net-worth individuals, multi-family offices, and global institutions including pension funds and sovereign wealth funds. Neo is backed by investors including , MUFG and Euclidean Capital LLC. In March 2026, the firm raised ₹500 crore from at a ₹10,000 crore pre-money valuation.
NAAM’s new infra fund comes as investor interest in the sector remains strong, driven in part by a steady pipeline of road assets that can absorb large institutional capital.
Earlier this month, Australian asset manager Macquarie Asset Management announced the sale of Safeway Concessions to Vinci SA for an implied enterprise value of approximately ₹15,000 crore.
Macquarie is reportedly also seeking a stake in the CDPQ-backed Maple Infrastructure Trust. KKR has been consolidating its road portfolio under Vertis, aiming to build a platform large enough to rival Singapore-based Cube Highways, which acquired two annuity road assets in Jammu and Kashmir in 2025.
In 2024, KKR-backed Highways Infrastructure Trust signed definitive agreements to acquire a dozen road projects from PNC Infratech Ltd for ₹9,005 crore.
“The National Highways Authority of India (NHAI) has identified 24 assets across 12 states for monetization via ToT and infrastructure investment trusts (InvITs) modes. The identified 24 assets may garner ₹21,000-24,000 crore for the NHAI,” the agency said in a March 2025 report.
Ratings agency Icra Ltd had projected toll rate growth of 2.5–3.9% in 2025-26, which, along with 3–5% traffic growth, was expected to drive 7-9% growth in toll collections.