Neo Asset Management: Reimagining Alternatives for India's Growth Decade

1. Neo has built a strong identity across the alternatives space. How would you describe Neo's core investment philosophy? What are the flagship strategies across credit, equity, and real assets —and how do they reflect the evolving opportunity in India's private markets?

Neo Group is a new-age, focused wealth and asset management platform that aims to provide clients with unbiased investment solutions in a transparent and cost-efficient manner.

At Neo Asset Management, our vision is to build India's preferred alternatives asset management platform where opportunity meets competency. We aim to offer full-spectrum solutions across the risk-return curve, tailored to meet diverse investor needs. Our core investment philosophy is centred on delivering superior risk-adjusted returns, with a focus on taking " no binary risks".

Our flagship strategies include the Neo Special Credit Opportunities Fund focused on private credit lending, the Neo Secondaries Fund focused on secondaries in private equity, and the Neo Infra Income Opportunities Fund targeting operating real assets such as roads and solar.

These strategies are built around key shifts in India's private markets:

• Private credit is rapidly evolving. India today is where the U.S. was in early 2000s. With banks stepping back from bespoke financing, we expect private credit to represent 15% of total credit by 2027, with demand crossing ₹2 lakh crore annually.

• In Private equity, there's a significant mismatch between invested capital (₹30 lakh crore) and divested capital (₹14 lakh crore). As 90% of Indian companies remain privately held, and LPs seek liquidity, secondaries are set to play a critical role.

• For Real assets, global precedent shows that over 40% of operating assets are owned by asset managers. In India, with increasing asset monetization and a growing need for balance sheet deleveraging, we believe this will be one of the most exciting long-term income generating strategies.

At Neo, we are building a platform that helps partner capital with these structural trends to create long-term value for our investors.

2. Institutional investors today expect not just performance but also governance, alignment, and transparency. How are these principles embedded into Neo's operating and investment culture?

At Neo, we believe strong performance must go hand in hand with integrity, transparency, governance and alignment of client interest. These principles are deeply embedded into how we function and how we invest.

First and foremost, we are built on the philosophy of unbiased advice, where client outcomes are our highest priority. Our recommendations are based solely on the suitability and relevance of solutions to our clients' unique requirements.

Transparency is another core value. We strive to simplify and bring clarity to what can often be a complex and opaque investment world. Whether it's fund structures, investment processes, or cost disclosures, we aim to offer complete visibility to our investors across all aspects of our engagement.

Governance is central to our platform. We follow a disciplined investment process backed by strong internal checks and independent oversight. Our investment and risk committees ensure decisions are well-vetted, conflicts are avoided, and fiduciary responsibilities are upheld at every stage. Most importantly we appoint two external agencies to do our fund valuations every quarter. Valuations in private markets is the hall mark of governance.

Lastly, we're deeply focused on cost-efficiency, helping clients maximize net returns by keeping fees fair and performance-linked. For us, this isn't just about optics it's about building lasting trust with institutional partners who are looking for long-term, transparent, and well-governed investment relationships.

Together, these values—unbiased advice, transparency, cost-efficiency, and governance—are not just guiding principles. They are the foundation of our culture and the reason why institutions choose to partner with Neo.

3. Neo's maiden Special Credit Opportunities Fund was oversubscribed, and the follow-on fund is targeting ₹5,000 crore. What's driving this surge in demand for special situations credit in India? What makes this an attractive vintage for such strategies and how does Neo build downside protection while targeting 20%+ IRRs?

India's private credit market is at a pivotal moment. With traditional lenders constrained by regulatory limits and ALM mismatches, there's a growing ₹2 lakh crore+ annual demand for flexible capital especially from mid-market companies facing special situations like acquisitions, refinancing, or last-mile funding. Yet, private credit remains underpenetrated, accounting for just ~1.6% of the $1.5 trillion bond and wholesale credit market.

Neo's maiden Special Credit Opportunities Fund tapped into this gap, raising ₹2,272 crore and deploying more than 100% gross capital across 25 deals with rigorous diligence and selection, seven of which have already been exited at higher than committed IRR displaying outperformance. The follow-on ₹5,000 crore fund continues the same strategy: targeting 22%–24% IRR by providing structured, secured capital to EBITDA-positive companies in asset-heavy sectors.

Downside protection is built through 2x collateral cover, low leverage (<4x debt/EBITDA), and sole lender positioning. We avoid high-risk sectors and ensure thorough due diligence—legal, financial, technical, and promoter checks—along with ongoing monitoring. With regular coupon and principal repayments and higher collateral cover, there is further enhancing of capital safety. This combination of favourable market dynamics, disciplined underwriting, and strong governance makes this a highly attractive offering for special situations credit in India.

4. You recently closed Neo's maiden Infrastructure Income Opportunities Fund at ₹2,300 crore. What's driving this investor appetite for infrastructure-backed credit? Beyond predictable yields, do you see infra credit as a source of long-term alpha and capital protection in volatile markets?

Core infrastructure buyout is emerging as a compelling theme for Indian investors, driven by the search for stable income, inflation protection, and portfolio resilience. What was once largely limited to global institutional capital is now attracting growing interest from domestic HNIs, family offices, and institutions through structures like InvITs and AIFs.

At Neo, we recently closed our Infrastructure Income Opportunities Fund (NIIOF) at ₹2,300 crore exceeding our target of ₹2,000 crore reflecting this strong appetite. The fund invests in operating NHAI roads and solar power projects, offering predictable, contracted cash flows with tangible asset backing.

Globally, real assets form 10–30% of institutional portfolios, and in 2024 alone, infrastructure funds raised over $84 billion. India is following suit, with landmark moves like EPFO's ₹2,035 crore investment into National Highways Infra Trust signaling a clear pivot towards this asset class.

We see infrastructure credit as more than just a yield play, it's a dual opportunity. It provides regular distributions and also delivers long-term alpha, supported by India's infrastructure push and growing pool of investible operational assets. With NIIOF, we've created a platform that combines financial performance with one of the most experienced operating teams in the country.

5. Neo is targeting ₹2,000 crore for its private equity secondaries strategy. What was the market gap or insight that led to this strategy? Despite India's deepening private equity ecosystem, secondaries remain significantly underpenetrated. Why is now the right time to enter this space? How does this fit into Neo's overall philosophy of risk-adjusted return generation across market cycles?

India's private equity market has matured rapidly, with over ₹30 lakh crore invested, but less than half of that realised. This gap highlights a growing need for structured liquidity solutions, which is exactly where secondaries come in.

Globally, secondaries have proven to be a high-performing asset class, delivering ~20% dollar IRRs over the last decade well above public market benchmarks. In India, however, the space remains underpenetrated. As more funds age and LPs seek exits, we believe the next five years will see a sharp rise in secondary deal activity.

Secondaries exist to solve real and evolving challenges across private markets—providing liquidity at the end of a fund's life, enabling partial exits for early investors, simplifying cap tables, and even offering monetisation opportunities to founders and ESOP holders. As portfolios age and structures evolve, secondaries play a critical role in maintaining capital efficiency and investor confidence.

At Neo, our secondaries strategy fits naturally into our philosophy of generating superior, risk-adjusted returns across cycles. By acquiring stakes in cos. demonstrating strong growth and staying EBITDA-positive, these businesses are valued at attractive discounts to their listed peers, thereby we can reduce capital risk, shorten holding periods, and improve exit visibility. It's an opportunity to back proven companies while unlocking value for early investors and that's a win-win for all stakeholders.

6. With rising valuations in primary rounds and extended exit timelines, secondaries are emerging as a tool for liquidity and portfolio rebalancing. How do secondaries help investors tap into value at a lower risk entry point? And how does Neo Secondaries Fund create alignment between exiting LPs and long-term capital providers?

In an environment of rising primary valuations and elongated holding period, secondaries offer a compelling alternative. They allow investors to access high-quality businesses at a more de-risked stage with greater visibility on performance, shorter time to exit, and often at a discount to fair value. This combination makes secondaries a more efficient entry point, especially in late-stage or mature companies.

Neo Secondaries Fund is designed to harness this advantage while creating a win-win alignment between exiting LPs and incoming long-term capital. For existing investors, it offers a much-needed liquidity solution, enabling partial or full exits in situations where timelines have stretched or capital needs have changed. For new investors, it provides access to a curated portfolio of industry-leading companies typically EBITDA positive, with strong governance and a clear path to exit.

Our approach focuses on structured, negotiated deals that balance the interests of both sides. We look to acquire positions at 10–15% discounts, ensuring upside potential, while our investment horizon of 3–4 years helps us unlock value without overextending fund tenor. This strategy not only protects capital but also strengthens market efficiency by injecting flexibility into an otherwise illiquid asset class.

7. With GIFT City emerging as a hub for alternative investment structures, what opportunities do you see for India to become a gateway for global capital? What are some of the strategies Neo is currently offering through GIFT, and how are global LPs responding to this platform?

GIFT City is fast becoming a gateway for global capital into India, offering a regulatory environment on par with global financial hubs. With streamlined access to FDI, FPI, and FVCI routes, and a competitive tax and compliance framework, it allows institutional investors to allocate capital into India with greater ease and efficiency.

At Neo, we see GIFT as a long-term platform for innovation and cross-border capital mobilisation. We currently manage two strategies under the GIFT framework: the Neo Special Credit Opportunities Fund, focused on secured private credit, and the Neo Secondaries Fund, which offers exposure to mature, de-risked private equity positions. Our Infrastructure Income Opportunities Fund which recently closed at ₹2,300 crore was also offered through GIFT and saw strong interest from global investors.

We're seeing growing demand from offshore LPs who want access to India's alternatives market but through globally familiar structures. GIFT allows us to bridge that gap—offering them India's growth, with international-grade governance and transparency. For Neo, GIFT isn't just a regulatory platform—it's a strategic lever to scale our global aspirations while staying anchored to India's real economy.

8. Looking ahead, where do you see Neo over the next 3–5 years? Could you share your vision for growth—including expansion into new strategies, investor segments, or geographies?

Over the next 3–5 years, our focus is on building Neo Asset Management into a leading full-stack alternatives platform rooted in performance, governance, and innovation.

We aim to significantly deepen our product basket to meet the evolving needs of investors across the entire alternatives' spectrum—credit, secondaries, infrastructure, and beyond. This means scaling existing flagship strategies like special credit, core infrastructure and secondaries, while introducing new offerings in private equity, hybrid structures, and global co-investment opportunities through GIFT City.

We're also deepening engagement across investor segments—from global LPs and domestic institutions to family offices and UHNIs—by tailoring access, transparency, and reporting standards to their unique requirements.

Geographically, while India remains our core focus, we're increasingly seeing demand for India-linked strategies from offshore capital pools. Platforms like GIFT City allow us to bridge that interest with globally competitive structures.

Ultimately, our growth will be guided by a simple principle: delivering risk-adjusted outcomes across market cycles, while remaining deeply aligned with the long-term goals of our investors.

9. India's private capital market is evolving rapidly—from private credit and secondaries to infra and hybrid capital. As a platform straddling these themes, what excites you most about this next decade of Indian alternatives?

Globally, alternatives are projected to become a $30 trillion asset class by 2029, growing at 10% annually. Yet they still account for less than 2.5% of global financial assets underscoring how early we are in this journey. India mirrors this under-penetration but is catching up fast. The AIF industry has grown at a 50% CAGR over the last decade, with over ₹13.5 lakh crore in commitments ₹10 lakh crore of which is in Category II alone.

At Neo, we see this moment as a generational opportunity to build forward-looking strategies that align with India's macro themes whether it's nation-building through infrastructure, unlocking liquidity through secondaries, or backing resilient, cash-generating businesses through private credit.

This next decade will be defined by how platforms like ours deliver institutional-quality products with transparency, governance, and outcome orientation. We're excited to be part of shaping that future.

10. Neo has so far focused on yield, what capabilities does the platform bring on the PE side, and more so on the Secondaries front? How is the Neo Secondaries Fund (NSF) geared up to leverage this opportunity?

While Neo has built a strong foundation in yield-oriented strategies like private credit and infrastructure, the expansion into private equity secondaries marks a natural extension of our platform's capabilities combining disciplined underwriting, risk-managed execution, and deep understanding of mid-to-late-stage businesses.

The team at Neo Asset Management is one of the few teams in the industry which has deep financial expertise managing USD 40 bn of assets across the teams and deep operating expertise having run some of the largest wealth and asset management platforms in India and being founders themselves. This combination of financial and operating expertise gives the team a unique perspective when doing private market investments.

Neo Secondaries Fund (NSF), a Category II AIF, is designed to capitalize on this opportunity through a focused portfolio of 12–15 mature, EBITDA-positive companies with clear paths to liquidity in 2–4 years. We target discounted entry valuations, strong governance ecosystems, and businesses with ~20% revenue CAGR creating a compelling value proposition for both exiting LPs and new capital providers.

By combining patient capital with improved entry points, NSF allows investors to access high-quality assets with reduced risk and shorter duration making it a differentiated play in the Indian PE landscape.