Neo Asset Management announces first close of Rs 2,000 Cr secondaries fund

Neo Asset Management has announced the first close of its Rs 2,000 crore private equity fund, the Neo Secondaries Fund, after raising Rs 750 crore from investors.

Earlier this year, it marked the first close of its second flagship private credit vehicle, the Neo Special Credit Opportunities Fund II (NSCOF II), at Rs 2,000 crore. The fund, registered with SEBI, is targeting a total corpus of Rs 5,000 crore.

The SEBI registered Category II Alternative Investment Fund focuses on acquiring secondary stakes in unlisted Indian companies that are EBITDA positive and offer an exit path within two to four years.

According to Neo Asset, launching a late stage secondary fund enables more visible returns and provides liquidity to existing investors as older funds near the end of their lifecycle.

The fund has already made three investments in disposable hygiene products manufacturer Noble Hygiene, beauty and personal care platform Purplle, and Mumbai based AI firm Fractal Analytics. It has also signed a multi asset deal with an Indian venture capital firm, though the name was not disclosed.

In August last year, Neo raised Rs 400 crore in an equity round led by Japanese lender MUFG Bank and New York based Euclidean Capital. Peak XV Partners, which had invested around 35 million dollars in October 2023, also participated.

Neo Group is a new age wealth and asset management platform backed by Peak XV Partners, MUFG Bank, and Euclidean Capital. Its India focused arm, Neo Asset Management, oversees more than Rs 10,000 crore in AUM across asset classes, aiming to deliver returns with stable cash flows.