Neo Asset Management Closes INR 2,000 Cr in First Close of Flagship Private Credit Fund NSCOF-II NSCOF-II is designed to offer bespoke credit solutions to EBITDA-positive companies, with a focus on fully secured investments backed by 2-3x hard asset collateral and bearing regular interest coupons.
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Neo Asset Management, the alternative asset management arm of Neo Group, has announced the first close of its second flagship private credit fund – Neo Special Credit Opportunities Fund-II (NSCOF-II) – at INR 2,000 crore.
The fund, which was launched just three months ago, is targeting a total corpus of INR 5,000 crore and has been registered with SEBI as a Category II Alternative Investment Fund (AIF).
NSCOF-II is designed to offer bespoke credit solutions to EBITDA-positive companies, with a focus on fully secured investments backed by 2-3x hard asset collateral and bearing regular interest coupons.
Puneet Jain, CIO and Co-founder of Neo Asset Management, said, "We are committed to adhering to our fund strategy and delivering returns. With a strong pipeline in place, we look forward to deploying capital efficiently in Fund-II. Our objective is to create a well-diversified portfolio with 25-30 investments, each ranging between INR 150-300 crore."
Neo's previous private credit vehicle, NSCOF-I, closed in June 2024, raising INR 2,575 crore. It claims to have fully deployed its capital across 23 investments and exited 7 of them within 18 months, reflecting the team's strong deal sourcing and execution capabilities. Over the past two years, the firm has evaluated over 450 opportunities, underscoring the depth of India's mid-market credit landscape.
"NSCOF-II builds on the success of our first fund," said Rubin Chheda, MD and Head – Special Situations Strategy. "Mid-market special situations credit remains a largely untapped opportunity. Our disciplined investment approach and strong risk framework continue to deliver superior risk-adjusted returns."
Neo Group, backed by Peak XV Partners, MUFG Bank, and Euclidean Capital, manages INR 40,000 crore in wealth assets under advisory and over INR 10,000 crore in alternatives AUM. With a 45-member team, including 20+ investment specialists with an average of 20 years' experience, Neo Asset Management continues its mission to become India's premier platform for alternative investments, enabling growth through tailored capital solutions and disciplined returns.
