The strategy, which includes Neo Special Credit Opportunities Fund-II (NSCOF-II), a SEBI-registered Category II Alternative Investment Fund (AIF), focuses on providing structured and flexible financing solutions to established Indian businesses. These include acquisition financing, refinancing, growth capital and special situations where conventional lending structures may not adequately address business requirements.
The investment approach prioritises businesses with established operating cash flows and employs structured transactions, collateral-backed security and prudent leverage to manage downside risk while seeking regular income and attractive risk-adjusted returns. The strategy has attracted participation from leading family offices and institutional investors.
The final close builds on the progress of Neo’s first private credit strategy, Neo Special Credit Opportunities Fund-I (NSCOF-I), which closed in June 2024 with Rs 2,575 crore in commitments. Since inception, the strategy has recorded gross deployment exceeding 150 per cent of its fund corpus, completed 35 investments and achieved 17 exits, demonstrating its ability to originate, structure and realise investments across market conditions.
“The strength of our investment framework lies in our disciplined approach to underwriting, thoughtful transaction structuring and focus on meaningful collateral cover. As we move forward with NSCOF-II, our priority is to deploy capital judiciously and build a well-diversified portfolio of approximately 35–40 investments, with individual deal sizes generally ranging from Rs 150–500 crore. We remain focused on identifying compelling opportunities that align with our investment philosophy and deliver differentiated outcomes for our investors,” Puneet Jain, Co-Founder & CIO, NAAM, said in a statement.
India’s mid-market special situations credit segment offers a large and underserved opportunity to finance businesses seeking capital beyond conventional lending channels. Our selective, collateral-backed approach enables us to pursue this opportunity while staying true to our underwriting standards, Rubin Chheda, MD & Head – Special Situations Credit, NAAM, said.
“The significance of this fundraise goes beyond the capital raised – it reflects the growing acceptance of private credit as an important source of capital for Indian businesses, and the confidence investors have placed in our ability to manage that capital responsibly. India has a substantial opportunity for structured credit solutions that meet the evolving needs of established businesses,” Hemant Daga, Co-Founder & CEO, NAAM, said.
