Key Takeaways
- • Neo Alternative Asset Managers (NAAM) raised ₹6,200 crore at the final close of its second special credit opportunities strategy, exceeding its ₹5,000 crore target by 24%.
- • The second fund, Neo Special Credit Opportunities Fund-II (NSCOF-II), is a Sebi-registered Category II AIF focused on structured financing for established Indian businesses.
- • The fund targets approximately 35-40 investments with individual deal sizes generally between ₹150 crore and ₹500 crore.
- • NSCOF-I, the maiden strategy closed in June 2024 with ₹2,575 crore in commitments, has deployed more than 150% of its corpus across 35 investments and achieved 17 exits.
- • The fund has attracted family offices and institutional investors, according to the company release.
Summary
The fundraise extends Neo's private credit business following the closure of its maiden strategy, Neo Special Credit Opportunities Fund-I (NSCOF-I), in June 2024 with commitments of ₹2,575 crore. NSCOF-II is registered with the Securities and Exchange Board of India (Sebi) as a Category II Alternative Investment Fund. It will target acquisition finance, refinancing, growth capital and special situations where conventional lending structures may not meet funding needs. The strategy prioritises businesses with established operating cash flows and uses structured transactions, collateral-backed security and prudent leverage to manage downside risk while targeting regular income and risk-adjusted returns.
Puneet Jain, Co-Founder and CIO of NAAM, said the fund will focus on deploying capital judiciously and building a diversified portfolio of approximately 35-40 investments, with deal sizes generally between ₹150 crore and ₹500 crore. Rubin Chheda, MD and Head of Special Situations Credit, said India's mid-market special situations credit segment offers a significant opportunity to finance businesses seeking capital beyond conventional lending channels. Hemant Daga, Co-Founder and CEO, said the fundraise reflected growing acceptance of private credit as a source of capital for Indian businesses and investor confidence in the firm's capital management.
NSCOF-I has recorded gross deployment exceeding 150% of its fund corpus, completed 35 investments and achieved 17 exits since inception. Founded in 2021, Neo Wealth and Asset Management manages approximately ₹1.40 lakh crore in total client assets across advice and management, operating across 17 cities in India and two international locations. NAAM manages more than ₹31,000 crore across four strategies spanning private equity, private credit and real assets, including infrastructure and real estate, with a team of over 100 professionals, including more than 65 investment specialists.
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