Key Takeaways
- • Neo Alternative Asset Managers held the final close of Neo Special Credit Opportunities Fund-II at Rs 6,200 crore (about $654 million), exceeding its initial Rs 5,000 crore target, according to the firm's November 3 announcement.
- • Limited partners include family offices and institutional investors, though none were named.
- • The fund more than doubles its predecessor, which closed in June 2024 at Rs 2,575 crore.
- • The strategy has deployed more than 150% of its fund corpus on a gross basis, completing 35 investments and exiting 17, with recycled capital central to returns.
- • Co-founder and CIO Puneet Jain plans 35 to 40 investments with deal sizes generally between Rs 150 crore and Rs 500 crore.
Summary
Neo Alternative Asset Managers has reached the final close of Neo Special Credit Opportunities Fund-II at Rs 6,200 crore, about $654 million, according to the Indian manager's November 3 announcement. The close finished above the fund's initial Rs 5,000 crore target. Limited partners include family offices and institutional investors, which the firm did not name.
The fund provides structured and flexible financing to established Indian companies. Use cases include acquisition financing, refinancing, growth capital and special situations where bank lending does not fit. The strategy targets businesses with established operating cash flows and uses collateral-backed security and moderate leverage to limit downside.
Fund II more than doubles its predecessor, the first fund in the strategy, which closed in June 2024 with Rs 2,575 crore. Neo says the strategy has deployed more than 150% of its fund corpus on a gross basis, completed 35 investments and exited 17. Co-founder and CIO Puneet Jain said the firm plans about 35 to 40 investments in total, with deal sizes generally between Rs 150 crore and Rs 500 crore.
Neo Alternative is part of Neo Wealth and Asset Management, which manages more than Rs 31,000 crore across four strategies. Its backers include Peak XV Partners, MUFG and Euclidean Capital.
The fund's growth reflects continued demand for domestic performing and special situations credit in India, as companies seek financing that banks are slow or unwilling to provide. Capital recycling, evidenced by deployment above 100% of corpus, is central to the strategy's returns, so the pace of exits will matter as much as fund size.
The fund provides structured and flexible financing to established Indian companies. Use cases include acquisition financing, refinancing, growth capital and special situations where bank lending does not fit. The strategy targets businesses with established operating cash flows and uses collateral-backed security and moderate leverage to limit downside.
Fund II more than doubles its predecessor, the first fund in the strategy, which closed in June 2024 with Rs 2,575 crore. Neo says the strategy has deployed more than 150% of its fund corpus on a gross basis, completed 35 investments and exited 17. Co-founder and CIO Puneet Jain said the firm plans about 35 to 40 investments in total, with deal sizes generally between Rs 150 crore and Rs 500 crore.
Neo Alternative is part of Neo Wealth and Asset Management, which manages more than Rs 31,000 crore across four strategies. Its backers include Peak XV Partners, MUFG and Euclidean Capital.
The fund's growth reflects continued demand for domestic performing and special situations credit in India, as companies seek financing that banks are slow or unwilling to provide. Capital recycling, evidenced by deployment above 100% of corpus, is central to the strategy's returns, so the pace of exits will matter as much as fund size.
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