Neo Alternative Asset Managers Pvt Ltd (NAAM), formerly Neo Asset Management, has announced the first close of its Neo Infra Income Opportunities Fund II with commitments worth ₹1,500 crore against a total target corpus of ₹5,000 crore. The firm, which manages over ₹25,000 crore in assets, said the fund will continue its focused strategy of investing in revenue-generating infrastructure assets with long-term contracted cash flows.

The second vintage of its infrastructure income strategy is positioned around operational assets in sectors such as roads and renewable energy, with exposure largely backed by government-linked counterparties. According to the company, the structure is designed to deliver stable, predictable cash flows, offering an alternative to conventional fixed-income products amid evolving investor preferences.

Focus on operational infra assets and yield stability

The fund will primarily deploy capital into operating infrastructure projects, with a smaller allocation earmarked for selectively identified privately listed Infrastructure Investment Trusts (InvITs). NAAM said this mix is intended to enhance portfolio diversification while maintaining income visibility and downside protection.

The strategy builds on the performance of its first infrastructure fund, which invested in assets such as NHAI Hybrid Annuity Model (HAM) road projects and utility-scale solar portfolios. These investments have reinforced the platform’s capabilities in sourcing, evaluating, and actively managing long-duration infrastructure assets.

Deep Sector expertise and expanding deal pipeline

NAAM has built a dedicated infrastructure investment team of over 50 professionals, supported by specialists with decades of experience across roads, renewables, and large-scale project execution. The firm highlighted that its underwriting discipline and hands-on asset management approach remain central to its investment philosophy.

Investor interest in infrastructure income strategies continues to strengthen, supported by a growing pipeline of road assets, renewable platforms, and InvIT issuances. This expanding universe is creating opportunities for stable yield-seeking investors looking for long-term visibility and portfolio diversification.

Strong institutional backing and alternative growth strategy

Hemant Daga, Co-Founder of Neo Group and CEO of NAAM, said the strong first close reflects rising confidence in infrastructure as a resilient asset class, particularly at a time when investors are prioritising stability and predictable returns. He added that disciplined capital allocation and execution excellence remain key to scaling the strategy.

With backing from global investors and recent strategic participation from the TVS Group, Neo continues to strengthen its position in India’s alternatives landscape. The firm is increasingly focusing on private equity, private credit, infrastructure, and real estate strategies as part of its broader goal of building a leading alternatives platform in the country.