Neo Alternative Asset launches Rs 5,000 cr infra income Fund II; raises Rs 1,500 cr in first close

The fund, Neo Infra Income Opportunities Fund II, will invest in operational, revenue-generating infrastructure assets backed by long-term contracted cash flows, primarily from government counterparties, the company said in a statement.

New Delhi, Apr 29 (PTI) Neo Alternative Asset Managers on Wednesday announced the first close of its second infrastructure income fund, raising Rs 1,500 crore against a total target corpus of Rs 5,000 crore. The fund, Neo Infra Income Opportunities Fund II, will invest in operational, revenue-generating infrastructure assets backed by long-term contracted cash flows, primarily from government counterparties, the company said in a statement. The strategy will focus on sectors, such as roads and renewable energy, aiming to provide stable and predictable income with long-duration visibility, positioning it as an alternative to traditional fixed income products. Neo Alternative Asset Managers (NAAM), with over Rs 25,000 crore in assets under management, said it will largely deploy capital into operating assets, while allocating a portion to select opportunities, such as privately listed infrastructure investment trusts (InvITs), enabling diversification. The firm has previously invested in National Highways Authority of India (NHAI) Hybrid Annuity Model (HAM) road assets and utility-scale solar platforms through its first infrastructure fund. NAAM co-founder and CEO Hemant Daga said the strong response to the first close reflects rising investor confidence in infrastructure income as an asset class. ''In an environment where stability and yields are increasingly valued, high-quality infrastructure assets continue to stand out as compelling long-term investments,'' he said. The company said it has a dedicated infrastructure team of over 50 professionals and continues to expand its presence in India's infrastructure investment space, supported by a strong pipeline of opportunities across roads, renewable energy platforms and InvIT issuances.