Neo raises ₹6,200 cr from second private credit fund

Neo Wealth and Asset Management on Tuesday said its alternative asset management business -- Neo Alternative Asset Managers -- has completed the final close of its second private credit strategy, raising ₹6,200 crore, surpassing the initial target of ₹5,000 crore.

The strategy attracted participation from leading family offices and institutional investors, Neo Wealth and Asset Management said in a statement.

The fundraising followed the closure of Neo's first private credit strategy, Neo Special Credit Opportunities Fund-I (NSCOF-I) in June 2024 with ₹2,575 crore in commitments. Since inception, the strategy has recorded gross deployment exceeding 150 per cent of its fund corpus, completed 35 investments and achieved 17 exits.

Neo Special Credit Opportunities Fund-II (NSCOF-II), a SEBI-registered Category II Alternative Investment Fund (AIF), focuses on offering structured and flexible financing solutions to businesses.

These solutions include acquisition financing, refinancing, growth capital and special situations where conventional lending structures may not adequately address business requirements.

The company said that the investment approach prioritises businesses with established operating cash flows. It employs structured transactions, collateral-backed security and prudent leverage to manage downside risk while seeking regular income and attractive risk-adjusted returns.

"As we move forward with NSCOF-II, our priority is to deploy capital judiciously and build a well-diversified portfolio of approximately 35-40 investments, with individual deal sizes generally ranging from ₹150-500 crore," said Puneet Jain, Co-Founder & CIO at Neo Alternative Asset Managers.