Funding
Neo Asset Management Closes Second Credit Fund at ₹6,200 Crore, Beating Target by 24%
By News Desk ·
Key takeaways
- Neo Alternative Asset Managers raised ₹6,200 crore at the final close of its second special credit opportunities strategy, against a ₹5,000 crore target.
- The fund plans roughly 35-40 investments with individual deal sizes generally between ₹150 crore and ₹500 crore.
- Institutional investors accounted for 22-25% of the ₹6,200 crore corpus, up from 1-2% in the first fund, according to The Times of India.
- The maiden fund, NSCOF-I, closed in June 2024 with ₹2,575 crore in commitments and has completed 35 investments and 17 exits.
Neo Alternative Asset Managers has raised ₹6,200 crore at the final close of its second special credit opportunities strategy, exceeding its ₹5,000 crore target by 24%. Fortune India reported the fundraise, which follows the June 2024 close of the maiden Neo Special Credit Opportunities Fund-I with ₹2,575 crore in commitments.
Neo's Second Credit Fund and Its Investment Plan
The second strategy includes Neo Special Credit Opportunities Fund-II, a Securities and Exchange Board of India-registered Category II Alternative Investment Fund. It will provide structured financing to established Indian businesses through acquisition finance, refinancing, growth capital and special situations. The fund has drawn participation from family offices and institutional investors.
Puneet Jain, Co-Founder and CIO of Neo Alternative Asset Managers, said the fund would build a diversified portfolio of approximately 35-40 investments, with individual deal sizes generally ranging from ₹150 crore to ₹500 crore. "As we move forward with NSCOF-II, our priority is to deploy capital judiciously and build a well-diversified portfolio of approximately 35–40 investments, with individual deal sizes generally ranging from ₹150–500 crore," he said. Jain added that the investment framework would keep prioritising disciplined underwriting, transaction structuring and adequate collateral cover.
Rubin Chheda, MD and Head of Special Situations Credit, said India's mid-market special situations credit segment offers an opportunity to finance businesses seeking capital beyond conventional lending channels. Hemant Daga, Co-Founder and CEO, said the fundraise reflected growing acceptance of private credit as a source of capital for Indian businesses.
The Times of India put institutional investors at 22-25% of the ₹6,200 crore corpus, up from 1-2% in the first fund, and said Neo targets gross returns of 21-23%. The same report said Ascertis Credit's fourth fund crossed $700 million in commitments, with insurance companies and pension funds participating.
Neo's Fundraising Record
According to akta.pro company records, Neo Asset Management has five funding rounds on record and $164.8 million in total funding at Series B stage, with the last round dated November 25, 2025. The same records list a March 2026 round of Rs 500 crore from TVS Capital at a Rs 10,000 crore post-money valuation, and a November 2025 round of $25 million led by Crystal Investment Advisors.
| Date | Round | Amount | Lead investor |
|---|---|---|---|
| 2023-10 | Series B | $36 million | Peak XV Partners |
| 2024-07 | Corporate-funded | $3.8 million | Morde Foods |
| 2024-08 | Series unknown | $47.7 million | Euclidean Capital, MUFG Bank |
| 2025-11 | Series unknown | $25 million | Crystal Investment Advisors |
| 2026-03 | Funding round | Rs 500 crore | TVS Capital |
Neo's First Fund Track Record
Since its inception, NSCOF-I has recorded gross deployment exceeding 150% of its fund corpus, completed 35 investments and achieved 17 exits, the company said. Neo Wealth and Asset Management, founded in 2021, manages approximately ₹1.40 lakh crore in total client assets across assets under advice and management, and operates across 17 cities in India and two international locations.