Key Takeaways
- • Neo Alternative Asset Managers closed its first tranche at ₹1,500 crore ($158 million) for Neo Infra Income Opportunities Fund II, targeting a total corpus of ₹5,000 crore, representing 30% of the fund's target goal.
- • The fund focuses exclusively on operational, revenue-generating infrastructure assets backed by long-term government contracts, primarily in roads and renewable energy sectors, positioning the offering as a lower-risk alternative to traditional fixed-income products.
- • Neo Alternative Asset Managers manages over ₹25,000 crore in assets under management and will deploy capital through a dual strategy: majority allocation to operating assets plus selective exposure to privately listed infrastructure investment trusts (InvITs).
- • The strong first close demonstrates institutional investor confidence in infrastructure income as a stable asset class, according to Hemant Daga, co-founder and CEO, reflecting elevated demand for yield-generating assets with long-duration visibility.
- • Neo's infrastructure team comprises over 50 professionals with a documented track record investing in NHAI Hybrid Annuity Model road assets and utility-scale solar platforms through its first infrastructure fund.
Summary
Neo Alternative Asset Managers announced the first close of its second infrastructure income fund on April 29, 2026, raising ₹1,500 crore against a stated target corpus of ₹5,000 crore. The Neo Infra Income Opportunities Fund II represents a scaled-up iteration of the firm's inaugural infrastructure fund, now achieving 30% of its capital target at first close.
The fund's investment mandate centers on operational, revenue-generating infrastructure assets exclusively, with capital flows underpinned by long-term contracted cash flows from government counterparties. Asset classes targeted include roads and renewable energy infrastructure, sectors with stable, predictable income characteristics and extended duration visibility. Neo Alternative Asset Managers indicated it will deploy the majority of capital directly into operating assets while allocating a selective portion to privately listed infrastructure investment trusts (InvITs), providing diversification across both direct and listed infrastructure exposure.
The fund positioning reflects a deliberate strategic choice to serve as an alternative to traditional fixed-income products. In an environment where institutional and high-net-worth investors increasingly prioritize stability and yield, the fund targets investors seeking long-duration visibility with contractual income backed by sovereign risk. Hemant Daga, co-founder and CEO of Neo Alternative Asset Managers, attributed the strong first close to "growing investor confidence in infrastructure income as a resilient asset class," emphasizing that "high-quality infrastructure assets continue to stand out as compelling long-term investments" amid elevated demand for stability.
Neo Alternative Asset Managers, which manages over ₹25,000 crore in total assets, has already built institutional credibility through its first infrastructure fund, which deployed capital into National Highways Authority of India (NHAI) Hybrid Annuity Model road assets and utility-scale solar platforms. The firm operates a dedicated infrastructure investment team of over 50 professionals and maintains an expanding pipeline of opportunities across roads, renewable energy platforms, and InvIT issuances. The company is backed by institutional investors including Peak XV, MUFG, and Euclidean Capital, and recently achieved unicorn status following investment from the TVS Group, positioning it as a well-capitalized player in India's infrastructure investment space.
The fund's investment mandate centers on operational, revenue-generating infrastructure assets exclusively, with capital flows underpinned by long-term contracted cash flows from government counterparties. Asset classes targeted include roads and renewable energy infrastructure, sectors with stable, predictable income characteristics and extended duration visibility. Neo Alternative Asset Managers indicated it will deploy the majority of capital directly into operating assets while allocating a selective portion to privately listed infrastructure investment trusts (InvITs), providing diversification across both direct and listed infrastructure exposure.
The fund positioning reflects a deliberate strategic choice to serve as an alternative to traditional fixed-income products. In an environment where institutional and high-net-worth investors increasingly prioritize stability and yield, the fund targets investors seeking long-duration visibility with contractual income backed by sovereign risk. Hemant Daga, co-founder and CEO of Neo Alternative Asset Managers, attributed the strong first close to "growing investor confidence in infrastructure income as a resilient asset class," emphasizing that "high-quality infrastructure assets continue to stand out as compelling long-term investments" amid elevated demand for stability.
Neo Alternative Asset Managers, which manages over ₹25,000 crore in total assets, has already built institutional credibility through its first infrastructure fund, which deployed capital into National Highways Authority of India (NHAI) Hybrid Annuity Model road assets and utility-scale solar platforms. The firm operates a dedicated infrastructure investment team of over 50 professionals and maintains an expanding pipeline of opportunities across roads, renewable energy platforms, and InvIT issuances. The company is backed by institutional investors including Peak XV, MUFG, and Euclidean Capital, and recently achieved unicorn status following investment from the TVS Group, positioning it as a well-capitalized player in India's infrastructure investment space.
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