Financial services firm Neo Asset Management has brought its debut credit opportunities fund to a successful conclusion, raising a total of INR 2,575 crore from domestic high net worth individuals and family offices.
Dubbed the Neo Special Credit Opportunities Fund, the Category II alternative investment fund focuses on providing customized debt solutions to profitable businesses. Since launch over 15 months ago, the fund has already backed 12 companies while completing two exits. Neo Asset aims to deliver investors returns in the range of 22-24% through investments from the credit vehicle.
Speaking on the finalization of fund raising, Puneet Jain, CIO at Neo Asset, commented that their tailored debt structures are designed to generate meaningful value for portfolio companies alongside attractive opportunities for backers. The solutions offer diversification through steady income streams and collateral protection.
Founded in 2021, Neo provides wealth advisory, asset and family office management, and a wealthtech platform for independent advisors. It currently oversees assets worth more than INR 30,000 crore for over 1,500 clients. Last October saw follow-on funding of $35 million from Peak XV Partners to expand its wealth management operations and deepen the asset management franchise.
Going forward, Neo Asset targets capturing a slice of India's enormous INR 460 lakh crore mutual fund industry. While incumbents dominate market share, both established and new fintech players continuously vie for space. The Mumbai-based firm looks to deliver outperformance without equity volatility through its credit-oriented offerings.
