Private equity ventures initiated by Neo Asset through a secondary fund, achieving its initial completion
Neo Asset Management's Infrastructure and Private Equity Funds See Success
Neo Asset Management, the wealth and asset management arm of Neo Group based in Mumbai, has made significant strides in the Indian market. The company has recently completed fundraising for its maiden infrastructure fund, surpassing its target, and launched its first private equity (PE) secondaries fund just three months ago [1][2][3].
The Neo Secondaries Fund (NSF) has successfully completed its first close, raising Rs 750 crore towards a target corpus of Rs 2,000 crore (approximately $240 million) [1][2][3]. This SEBI-registered Category II Alternative Investment Fund focuses on acquiring secondary stakes in late-stage unlisted Indian companies that are EBITDA positive, show consistent revenue growth, and have a clear exit path within 2 to 4 years [1][2][3][4].
Since its launch, the NSF has already deployed or committed over Rs 550 crore in four investments: stakes in Nobel Hygiene, Purplle, Fractal Analytics, and a multi-asset transaction with a domestic venture capital firm [1][2][3]. The fund targets investments ranging from Rs 50 crore to Rs 250 crore across 12-15 transactions, with an investment holding period of up to six years [1][2][3].
The Neo Secondaries Fund reflects Neo’s strategy to provide liquidity solutions in India’s maturing private equity market where investors seek secondary transactions as timely exit routes. The fund also aims to offer investors access to high-quality, late-stage companies with visible returns in a shorter time frame compared to traditional private equity investments [1][2][3][4].
Neo Asset Management, backed by Peak XV Partners, MUFG Bank, and Euclidean Capital, manages over Rs 13,500 crore across asset classes, including private equity, credit, and infrastructure [1][3][4]. The fund is managed by Nitin Agarwal, a private equity veteran with more than 24 years of experience [3].
Meanwhile, Neo Asset Management has also exceeded its target for its maiden infrastructure fund [5]. The exact amount raised has not been disclosed, but it is known that this is the company's first foray into infrastructure investments.
In other news, PremjiInvest-backed iD Fresh is planning a fundraising round, with early investors potentially considering an exit [6]. The exact details of the fundraising round are yet to be announced.
References: [1] Mint - Neo Asset Management raises over Rs 750 crore for its maiden PE secondaries fund [2] The Economic Times - Neo Asset Management's PE secondaries fund raises Rs 750 crore [3] Livemint - Neo Asset Management raises over Rs 750 crore for its maiden PE secondaries fund [4] Financial Express - Neo Asset Management's PE secondaries fund focuses on acquiring secondary stakes in late-stage unlisted Indian companies [5] Business Standard - Neo Asset Management completes fundraising for its maiden infrastructure fund [6] Moneycontrol - iD Fresh planning fundraising round, early investors may consider exit
The Neo Secondaries Fund, focusing on secondary stakes in mature Indian companies, aims to raise Rs 2,000 crore for investing in private equity opportunities, with an objective to provide timely exit routes in the maturing private-equity market. Neo Asset Management's success in exceeding its target for the maiden infrastructure fund signifies a significant step towards expanding its investment portfolio beyond private equity.
