Neo Wealth and Asset Management’s alternative investment arm, Neo Alternative Asset Managers (NAAM), has raised ₹6,200 crore through its second Special Credit Opportunities strategy, exceeding its initial fundraising target of ₹5,000 crore by 24%.
The fundraise marks a significant expansion of Neo’s private credit business, with the final close of Neo Special Credit Opportunities Fund-II (NSCOF-II), a SEBI-registered Category II Alternative Investment Fund (AIF).
The strategy focuses on providing structured financing to established Indian businesses through acquisition financing, refinancing, growth capital and special situations where conventional lending channels may not adequately meet funding requirements.
The investment approach prioritises businesses with established operating cash flows, using structured transactions, collateral-backed security and prudent leverage to manage downside risks while targeting regular income and risk-adjusted returns.
Second fund builds on ₹2,575 crore predecessor
The ₹6,200 crore fundraise builds on the performance of Neo’s first private credit strategy, Neo Special Credit Opportunities Fund-I (NSCOF-I), which closed in June 2024 with commitments of ₹2,575 crore.
Since inception, the first fund has recorded gross deployment exceeding 150% of its corpus, completed 35 investments and achieved 17 exits.
The second fund plans to build a diversified portfolio of approximately 35-40 investments, with individual deal sizes generally ranging between ₹150 crore and ₹500 crore.
“The strength of our investment framework lies in our disciplined approach to underwriting, thoughtful transaction structuring and focus on meaningful collateral cover,” said NAAM Co-Founder and CIO, Puneet Jain.
Private credit opportunity in India’s mid-market
NAAM MD and Head – Special Situations Credit, Rubin Chheda, said India’s mid-market special situations credit segment offered a large and underserved opportunity to finance businesses seeking capital beyond conventional lending channels.
He said the fund would maintain its focus on rigorous underwriting and downside protection through selective, collateral-backed investments.
NAAM Co-Founder and CEO Hemant Daga said the ₹6,200 crore mobilisation reflected growing investor acceptance of private credit as an important source of capital for Indian businesses.
Founded in 2021, Neo Wealth and Asset Management manages approximately ₹1.40 lakh crore in client assets across assets under advice and management, with a presence in 17 Indian cities and two international locations.
NAAM manages more than ₹31,000 crore across four strategies covering private equity, private credit and real assets, including infrastructure and real estate. Its team comprises over 100 professionals, including more than 65 investment specialists.
The latest fundraise strengthens Neo’s position in India’s alternative investment market as demand grows for structured financing solutions outside conventional banking channels.