Neo Asset Management Closes Maiden Special Credit Opportunities Fund at Rs 2,575 Crore

Neo Asset Management announced the successful closure of its first special credit opportunities fund, raising Rs 2,575 crore from high-net-worth individuals and multi-family offices. The fund aims to provide customized credit solutions with a targeted internal rate of return of 22-24% and has already made 12 investments with 2 successful exits within 15 months.

Neo Asset Management celebrated a significant milestone on Tuesday by announcing the closure of its inaugural special credit opportunities fund, successfully raising Rs 2,575 crore. The fund attracted investment from high-net-worth individuals (HNIs) and multi-family offices.

Targeting a gross internal rate of return (IRR) of 22-24%, the Category II AIF (Alternative Investment Fund), known as Neo Special Credit Opportunities Fund, aims to offer customized credit solutions to profitable companies. In just 15 months, the fund has made 12 investments and achieved 2 successful exits.

'We are overwhelmed by the client response in making our Special Credit Opportunities Fund I, the largest maiden credit fundraise in the country,' said Hemant Daga, CEO of Neo Asset Management. He added that there is immense demand for yield and regular income among their clients, which is also reflected in the growing interest in their infrastructure income strategy and core credit strategies.

Globally, private credit as an asset class is expanding at a yearly rate of 15-18%. Similarly, the Indian private credit sector is burgeoning, offering a compelling risk-adjusted asset class that provides regular income with notable downside protection.