Edelweiss veteran’s private credit fund hits first close

 Edelweiss veteran’s private credit fund hits first close

Neo Asset Management, said Wednesday it has garnered Rs 625 crore ($78.2 million) from domestic high net-worth individuals (HNIs) and multi-family offices to mark the first close of its Special Credit Opportunities Fund.

The fund, which was launched in June 2022, is a SEBI category II AIF and has a target of Rs 800 crore ($100 million) with a green shoe option of Rs 1200 crore ($150 million).

The firm said that Neo Special Credit Opportunities Fund (NSCOF) will invest the private pool of capital towards providing customized credit solutions to EBITDA positive companies that cannot be catered to by traditional channels of financing.

It will make 15 to 20 investments across sectors with at least two times tangible hard assets as additional collateral cover for each investment.

Nitin Jain, Founder and Chairman of Neo Group said, “The response to our maiden fund has been overwhelming. At Neo Group, it is our endeavour to leverage our multi decadal institutional expertise to bring some of the most innovative alternative products to the Indian diaspora which allows not only for great portfolio diversification but also delivers higher risk adjusted returns.”

The firm said that private credit markets in India are currently a Rs 50,000 crore annual market opportunity and is fast evolving. With significant creditor protection rights, private pools of capital have become accessible to companies in special situations that need working capital loans, growth capital, acquisition funding etc.

Investors in turn get an opportunity to earn higher, inflation beating risk adjusted returns.

“Private Credit in India is at an inflection point, and we see this asset class evolving significantly similar to global markets. Neo Asset Management endeavours to fulfil the need of patient, flexible credit requirements of corporate India. This will have a sustainable impact on the investee companies and their ecosystems,” said Hemant Daga, CEO, Neo Asset Management.

For investors, private credit funds offer a great opportunity for portfolio diversification and yield enhancement with significant downside protection, he added.

The fund is managed by co-founder and CIO of Neo Asset Management, Puneet Jain. Puneet has more than 19 years of capital and credit market experience in marquee firms like Goldman Sachs, Kotak and Edelweiss Alternative Asset Advisors.

Founder, Nitin Jain, is the former Wealth Management CEO at PAG-Edelweiss Financial Services. He hired a set of team members to build he franchise including Varun Bajpai (former Country Head, Macquarie Group joined as MD and CEO of Neo World, a digital personal finance platform for individuals); Hemant Daga (former CEO, Edelweiss Asset Management joined as MD and CEO of Neo Asset Management); Puneet Jain (former ED, Goldman Sachs and Kotak Institutional Equities joined as MD and CIO of Neo Asset Management); A Srikanth (founder BridgeMonte Advisors and former CEO Motilal Oswal Wealth joined as CEO of Neo Multi Family Office).

Last year, Baring PE Asia that was one of the first to float a formal private credit investment practice few years ago had pocketed a big cheque from anchor LP for its third India credit fund.

Sumit Upadhyaya

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