Neo Asset Management has announced the first close of its second private credit fund, Neo Special Credit Opportunities Fund-II (NSCOF-II), at Rs 2,000 crore.

Launched three months ago, NSCOF-II -- a SEBI-registered Category II Alternative Investment Fund (AIF) -- is targeting a total corpus of Rs 5,000 crore. 

The fund provides structured credit to mid-market, EBITDA-positive companies, backed by hard asset collateral and regular coupon payments. 

“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 Rs 150–300 crore,” said Puneet Jain, co-founder and chief investment officer of Neo Asset Management.

Neo’s debut private credit fund, NSCOF-I, was closed in June 2024 at Rs 2,575 crore. The fund deployed 100% of its capital across 23 transactions and has already exited from seven of those over the past 18 months, the company added. 

Founded by Nitin Jain and Hemant Daga in 2021, Neo Group is a wealth and asset management company. Its India-focused Alternative Asset Management arm, Neo Asset Management, claims to have managed more than Rs 10,000 crore of AUM (assets under management). Neo Group counts Peak XV Partners, MUFG Bank and Euclidean Capital among its backers. In 2023, Neo announced a $35 million round led by Peak XV Partners.