Neo Asset Management raises ₹750 cr in initial close of ₹2,000 cr Secondaries Fund: Metrics, investment strategy, other key details here

Neo Asset Management has announced the initial close of Neo Secondaries Fund, its flagship Private Equity fund. The fund aims for a total corpus of ₹2,000 crore and, in less than three months since launch, has already raised approximately ₹750 crore from prominent investors. NSF is a Sebi-registered Category II AIF, specialising in acquiring secondary stakes in unlisted Indian companies and providing liquidity to various investors.

The fund aims to invest in sector-leading companies that generate positive EBITDA and have substantial growth potential. It also looks for strong governance practices, a track record of increasing revenues, and a clear exit plan within 24–48 months of investment.

According to the Neo Asset Management press release, "The first close marks a pivotal moment for India’s evolving private equity landscape, where investor appetite is shifting towards established, high-growth businesses. As primary deal flow becomes more discerning, secondary transactions are gaining traction as a strategic route to access quality assets and generate liquidity in a maturing market."

Nitin Jain, Chairman and Managing Director of Neo Group, stated, “The Neo Secondaries Fund marks a strategic growth area for our platform into private equity. We are experiencing robust investor interest in accessing large, profitable companies at attractive entry points. NSF is specifically designed to meet this demand with a disciplined, opportunity-focused investment strategy.”

Neo Asset Management plans to become India’s top alternative asset Management platform by providing tailored capital solutions that foster company growth. This strategy aims to generate attractive, high-quality, long-term, and superior risk-adjusted returns for investors. The Neo Secondaries Fund is a key component of Neo’s broader strategy to develop a distinctive and comprehensive private markets platform.

Hemant Daga, CEO and Co-Founder of Neo Asset Management, explained, “The Neo Secondaries Fund offers investors access to a curated selection of high-growth, market-leading companies. It relies on thorough underwriting and is strategically designed to achieve superior risk-adjusted returns.” He continued, “Our strategy is based on disciplined investing and extensive sector knowledge. In a competitive environment where accessing quality businesses is challenging, NSF provides distinct exposure to companies with strong fundamentals and clear exit options. This underscores our dedication to developing a top-tier alternatives platform that delivers long-term value for investors.”

Investment strategy

The investment approach focuses on acquiring premium assets at appealing valuations, aiming to generate alpha. The AMC seeks assets with solid fundamentals, short-term liquidity prospects, and a clear exit plan. The fund will evaluate both individual asset deals and investments in multi-asset portfolios that fit the fund's overall strategy.

Fund manager

Nitin Agarwal, Head of Private Equity with over 24 years of experience—including leadership roles at prominent global secondaries and private equity platforms—manages the fund. “We are seeing growing demand for secondary capital in India as early investors look for liquidity and companies continue to scale,” said Agarwal. “NSF is well-positioned to solve for liquidity and DPI challenges faced by existing investors, offering them timely exit options. At the same time, new investors benefit from quicker cashflows and shorter holding periods, making secondaries a compelling strategy in India’s evolving private equity ecosystem”

So far, the fund has experienced strong deal flow and has completed three investments. Additionally, it recently signed a multi-asset deal with a leading VC firm in the country and is actively monitoring a robust deal pipeline. Current investments are in top-tier, late-stage companies that are proven market leaders across the consumer, technology, and AI/analytics sectors.

With more than ₹13,500 crores in assets under management (AUM), Neo is expanding its footprint in the private markets, including private equity, performing credit, special situations, infrastructure, and structured debt solutions. By maintaining disciplined execution, aligning closely with sponsors, and focusing sharply on investor results, Neo is well-positioned to lead the next stage of India’s alternative development, according to the press release.