Neo Asset Raises Rs 2,000 Cr in First Close of Second Private Credit Fund

Fintech Neo Group’s asset management arm, Neo Asset Management, has raised Rs 2,000 crore in the first close of its second private credit fund, called Neo Special Credit Opportunities Fund-II (NSCOF-II). 

Launched three months ago, the SEBI-registered fund aims to raise a total of ₹5,000 crore. It offers structured loans to mid-sized, profitable companies, backed by assets and regular interest payments.

The initial funds came from family offices, ultra-rich individuals, and institutional investors.

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NSCOF-II follows Neo’s first fund, which raised Rs 2,575 crore and closed in June 2024. That fund backed 23 deals and has already exited seven of them.

“With a strong pipeline in place, we look forward to deploying capital efficiently in Fund-II. Our objective is to create a well-diversified portfolio with 25–30 investments, each ranging between Rs 150–300 crore,” said Puneet Jain, Cofounder and Chief Investment Officer of Neo Asset Management.

“Mid-market special situations credit is an untapped opportunity, and Neo Asset Management is focused on this space. Our disciplined investment approach and risk framework have enabled us to deliver risk-adjusted returns,” said Rubin Chheda, Managing Director and Head – Special Situations Strategy at Neo Asset Management.

Currently, Neo Asset manages over Rs 10,000 crore in alternative investments. The larger Neo Group, supported by investors like Peak XV Partners, MUFG Bank and Euclidean Capital, manages over ₹40,000 crore and is building one of India’s top platforms for alternative investments. 

In its latest funding round, Neo Asset raised Rs 400 crore, led by MUFG and Euclidean, with continued support from Peak XV, which invested Rs 300 crore in 2023.

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