Neo Asset Management Plans to Raise ₹6,000 Crore for New Private Credit Fund

Neo Asset Management aims to raise ₹6,000 crore (~$699 million) for its second private credit fund, targeting wealthy individuals and institutions. The new fund would more than double the ₹2,575 crore raised previously. The firm plans to invest in mid-sized companies and specific financing scenarios, responding to a growing demand in India’s financial market.

Neo Asset Management, an Indian firm based in Mumbai, is striving to secure as much as ₹6,000 crore (approximately $699 million) for its second private credit fund. This initiative reflects the growing prominence of local firms in India’s expanding private credit arena. The fundraising effort commenced a few weeks ago, targeting affluent individuals, family offices, and institutions as potential investors. If successful, this fund would surpass its predecessor, which concluded with ₹2,575 crore in June.

The expansion of private credit in India is attributed to a robust economy and increasing lending opportunities for local firms. The Indian government’s infrastructure development initiatives have amplified the demand for middle-market financing solutions. S&P Global Ratings anticipates significant infrastructure spending, projected to reach ₹143 trillion by 2030, which presents further opportunities for domestic credit providers. This financial landscape has led to private credit deals reaching record levels in the first half of 2024, with $6 billion allocated across 96 transactions, as reported by Ernst & Young.

In summary, Neo Asset Management’s ambition to raise funds for its next private credit venture underscores a thriving market that is increasingly cultivated by local players. The surge in private credit activity mirrors the broader economic landscape in India, where substantial infrastructure projects drive the need for innovative financing solutions. As the company looks to finalize its fundraising within the coming months, it will undoubtedly contribute to the flourishing private credit environment in the nation.

Original Source: www.business-standard.com