Neo Asset Management closes ₹2,300 crore infrastructure fund, acquires first road asset

Neo Asset Management has announced the final close of its flagship infrastructure fund, the Neo Infrastructure Income Opportunities Fund (NIIOF), at ₹2,300 crore—exceeding its original target of ₹2,000 crore. NIIOF is a SEBI-registered Category II Alternative Investment Fund (AIF) focused on operating solar power assets and National Highways Authority of India (NHAI) road projects.

The oversubscription reflects growing interest among domestic investors in core infrastructure sectors, driven by the need for long-term capital and a robust pipeline of operational projects. The fund close also aligns with a broader shift in capital allocation toward real assets, especially roads and renewables, that offer stable, contracted cash flows.

"Our infrastructure investment strategy allows investors to participate in the excellent work being done by the government to improve the country’s infrastructure. Through our fund, investors can not only generate superior risk-adjusted returns but also contribute to nation-building," said Abishek Goel, Managing Director and Fund Manager, Neo Infrastructure Income Opportunities Fund, in a statement.

NIIOF has also completed its first acquisition—a 27.5-km toll road project on NH05 (Chandigarh–Shimla highway). With over 13 years of operational history, the project is expected to provide steady returns through consistent toll collections.

The fund targets investments in fully operational assets with government-backed counterparties, prioritising stability and predictable income. To date, NIIOF has deployed or committed ₹1,200 crore across a portfolio of road and solar assets and is actively evaluating additional NHAI projects with a combined equity value of over ₹2,000 crore.

The strategy aims to provide domestic investors with access to high-quality infrastructure assets—a segment traditionally dominated by global institutional capital. NIIOF plans to generate regular distributions while creating long-term value in sectors aligned with India’s infrastructure development agenda.

With this fund close, Neo Asset Management expands its growing platform, which now manages over ₹13,500 crore in assets across infrastructure, performing credit, special situations, and structured debt. The firm is positioning itself as a key player in India’s alternative investments landscape, with a focus on disciplined capital deployment and consistent investor outcomes.