Neo Asset Management proudly announces the successful closure of its maiden special credit opportunities fund, with an overall raise of INR 2,575 crore in the strategy. The fund, which received an overwhelming response from High-Net-Worth Individuals (HNIs) and Multi-Family Offices, marks a significant milestone in Neo Asset Management’s journey towards being a prominent alternative asset manager that focuses on investments across Private Credit and Real Assets.
Neo Special Credit Opportunities Fund is a SEBI-approved, Category II AIF, aimed to provide customized credit solutions to operating profitable companies, which cannot be catered to, by traditional channels of financing. In a short period of 15 months, the fund has already made 12 investments and has seen 2 successful exits. All investments are fully collateralized, acting as a second layer of defense, in addition to operating cashflows. The fund aims to deliver ~22-24% gross IRR to its investors.
Nitin Jain, Founder and Chairman of Neo Wealth & Asset Management said, “As India progresses towards becoming the world’s 3rd largest economy, private credit will play a pivotal role in meeting the industry’s patient and flexible capital requirements.” He added, “At Neo Asset Management, we strive to leverage our multi-decadal institutional expertise, to provide innovative alternative solutions to our clients.”
Globally, private credit as an asset class is growing at 15-18% per annum. Similarly, the Indian private credit industry is also rapidly growing and presents itself as a superior risk-adjusted asset class, delivering regular income to clients with significant downside protection. With robust creditor protection rights, private pools of capital like Neo Special Credit Opportunities Fund I, are instrumental in providing patient and flexible capital to small and mid-sized companies for growth opportunities, refinancing situations, bridge to equity events, etc.
Hemant Daga, CEO of Neo Asset Management Pvt. Ltd. said, “We are overwhelmed by the client response in making our Special Credit Opportunities Fund I, the largest maiden credit fund-raise in the country. We are also seeing tremendous response from clients in our infrastructure income strategy and our core credit strategies, which reflects a massive demand for yield and regular income from clients.”
Managed by CIO Puneet Jain, the fund embodies Neo Asset Management’s commitment to creating mutually beneficial opportunities for investee companies and investors alike. “Our structured credit solutions are designed to generate significant value for our investee companies, while offering investors a diverse array of opportunities – backed by cashflows and collateral,” said Jain.
The successful closure of Neo Asset Management’s maiden fund underscores its position in providing innovative alternative investment solutions and sets the stage for continued growth and success in the dynamic landscape of alternative markets in India.