Key Takeaways
- • Neo Alternative Asset Managers launched Infrastructure Income Fund II with a ₹5,000 crore target and secured ₹1,500 crore in its first close, demonstrating strong institutional demand for operating infrastructure assets in India.
- • The firm's flagship Neo Infrastructure Income Opportunities Fund (NIIOF) exceeded its ₹2,000 crore target, closing at ₹2,300 crores and has committed ₹1,200 crore across diversified roads and solar portfolios, including a 27km toll road on the Chandigarh-Shimla highway (NH05).
- • Neo Asset Management, the alternative asset management arm of Neo Group, manages over ₹13,500 crore in AUM across private credit, real assets, and core credit solutions, positioning it as a significant player in India's infrastructure and alternative investment landscape.
- • Fund II's deployment strategy focuses on operating infrastructure projects with predictable cash flows, aligning with structural tailwinds including long-term capital demand, favorable regulatory environment, and an expanding pipeline of high-quality operating assets across roads and renewables.
- • The successful fundraising underscores accelerating domestic institutional investor interest in India's infrastructure sector and validates Neo's execution capabilities in acquiring and managing operating NHAI (National Highways Authority of India) roads and solar power generation assets.
Summary
Neo Alternative Asset Managers has launched its second infrastructure fund, Infrastructure Income Fund II, with an ambitious ₹5,000 crore target, securing ₹1,500 crore in its first close as of April 29, 2026. The fund launch reflects strong institutional appetite for operating infrastructure assets amid India's ongoing infrastructure modernization and the structural shift toward private capital participation in core assets.
The capital raise for Fund II comes on the heels of the successful conclusion of Neo's flagship vehicle, the Neo Infrastructure Income Opportunities Fund (NIIOF), which exceeded its original ₹2,000 crore target and closed at ₹2,300 crores. NIIOF has already deployed ₹1,200 crore across a diversified portfolio of operating solar power generation plants and operational roads with concessions from the National Highways Authority of India (NHAI). Among its marquee acquisitions is a 27-kilometer toll road on NH05 running through Punjab, Haryana, and Himachal Pradesh, which Neo bid for and acquired in January 2024.
Neo Asset Management, the alternative asset management arm of Neo Group and headed by Co-Founder and CEO Hemant Daga, currently manages over ₹13,500 crore in assets under management. The firm provides credit and fixed income solutions across private credit, real assets, and core credit, positioning it as a diversified alternative investment manager within India's institutional ecosystem. Fund II's strategy aligns with the broader investment thesis around India's infrastructure sector, which is experiencing accelerating domestic investor interest driven by favorable regulatory environment, the need for long-term capital in operating core assets, and an expanding pipeline of high-quality infrastructure projects.
The successful first close of Fund II at ₹1,500 crore—representing 30% of the target—demonstrates institutional confidence in Neo's track record and execution capabilities in acquiring and managing revenue-generating infrastructure assets. Fund II targets operating projects with predictable cash flows, consistent with Neo's infrastructure income-focused investment mandate that has delivered results in the flagship fund.
The capital raise for Fund II comes on the heels of the successful conclusion of Neo's flagship vehicle, the Neo Infrastructure Income Opportunities Fund (NIIOF), which exceeded its original ₹2,000 crore target and closed at ₹2,300 crores. NIIOF has already deployed ₹1,200 crore across a diversified portfolio of operating solar power generation plants and operational roads with concessions from the National Highways Authority of India (NHAI). Among its marquee acquisitions is a 27-kilometer toll road on NH05 running through Punjab, Haryana, and Himachal Pradesh, which Neo bid for and acquired in January 2024.
Neo Asset Management, the alternative asset management arm of Neo Group and headed by Co-Founder and CEO Hemant Daga, currently manages over ₹13,500 crore in assets under management. The firm provides credit and fixed income solutions across private credit, real assets, and core credit, positioning it as a diversified alternative investment manager within India's institutional ecosystem. Fund II's strategy aligns with the broader investment thesis around India's infrastructure sector, which is experiencing accelerating domestic investor interest driven by favorable regulatory environment, the need for long-term capital in operating core assets, and an expanding pipeline of high-quality infrastructure projects.
The successful first close of Fund II at ₹1,500 crore—representing 30% of the target—demonstrates institutional confidence in Neo's track record and execution capabilities in acquiring and managing revenue-generating infrastructure assets. Fund II targets operating projects with predictable cash flows, consistent with Neo's infrastructure income-focused investment mandate that has delivered results in the flagship fund.
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