Neo Asset Management Raises Rs 750 Cr in First Close of Rs 2,000 Cr Secondary PE Fund

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Neo Asset Management has raised Rs 750 crore in the first close of its Neo Secondaries Fund, which aims for a total corpus of Rs 2,000 crore, focusing on secondary stakes in India’s high-growth firms.

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Neo Asset Management has successfully raised approximately Rs 750 crore in the first close of its flagship private equity vehicle, the Neo Secondaries Fund (NSF), less than three months after its launch. Registered with SEBI as a Category II Alternative Investment Fund, the NSF targets a total corpus of Rs 2,000 crore, focusing on acquiring secondary stakes in unlisted Indian companies.

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Targeted Investment Strategy of Neo Secondaries Fund

The Neo Secondaries Fund aims to provide liquidity to existing investors while offering new investors access to mature, high-growth businesses. Its investment thesis is centered around companies that are segment leaders, EBITDA-positive, and have a clear exit path within two to four years.

By specializing in secondary market transactions, NSF allows early investors to unlock capital, facilitating timely exits and accelerating cash flows for new entrants. This positions the fund as a solution to liquidity and Distributed to Paid-In (DPI) challenges commonly faced within India’s private equity ecosystem.

Key Highlights of NSF’s Investment Focus

• Acquisition of secondary stakes in unlisted Indian companies.
• Focus on segment-leading, EBITDA-positive firms with robust growth trajectories.
• Targeted exit horizons ranging between 2 to 4 years for portfolio companies.
• Investments primarily in late-stage companies across consumer, technology, and AI/analytics sectors.

Strong Leadership and Vision

Nitin Jain, Chairman and Managing Director of Neo Group, emphasized India’s rapid economic growth and its private markets’ evolving role. He stated, “India is the fastest-growing major economy in the world, and private markets are playing a pivotal role in driving capital formation. The Neo Secondaries Fund represents a strategic expansion of our platform into the private equity space. We’re seeing a strong investor demand for access to scaled, profitable businesses at value-accretive entry points. NSF is purpose-built to address that demand through a disciplined and opportunity-led investment approach.”

Complementing this, Hemant Daga, CEO and Co-Founder of Neo Asset Management, remarked, “The fund gives investors access to a curated portfolio of high-growth, market-leading companies. Our approach is rooted in disciplined investing and deep sector insights. In today’s environment, where access to quality businesses is increasingly competitive, NSF offers differentiated exposure to companies with strong fundamentals and clear exit pathways.”

Current Fund Performance and Partnerships

Since its launch, the NSF has already closed three investments and signed a multi-asset deal with a leading domestic venture capital firm. Some of these investments include late-stage companies in dynamic sectors such as consumer goods, technology, and AI/analytics. [Learn more about Nobel Hygiene’s funding round](https://yourstory.com/2025/05/nobel-hygiene-raises-rs-170-cr-from-neo-asset-management-ahead-of-ipo), an example of Neo’s recent investments in this space.

Nitin Agarwal, Head of Private Equity at Neo, noted the growing demand for secondary capital in India, stating, “As early investors seek liquidity and companies continue to scale, NSF is well positioned to solve liquidity and DPI challenges, offering timely exit options to existing investors. At the same time, new investors benefit from quicker cash flows and shorter holding periods, making secondaries a compelling strategy in India’s evolving private equity ecosystem.”

Neo Asset Management’s Growing Private Markets Platform

Neo Asset Management manages assets exceeding Rs 13,500 crore, spanning private equity, credit, infrastructure, and structured debt. The firm is supported by prominent investors including Peak XV Partners, MUFG, and Euclidean Capital LLC.

Through NSF and its expanding suite of investment vehicles, Neo Asset Management is building a differentiated private markets platform, catering to both domestic and global investors seeking exposure to India’s fastest-growing sectors.

Looking Ahead: The Potential of Secondary Private Equity Investments in India

Secondary private equity funds like NSF play a critical role in India’s investment landscape by providing liquidity solutions and enabling greater capital recycling. This dynamic is particularly relevant given India’s position as the world’s fastest-growing major economy, where private markets increasingly fuel capital formation and business scale-ups.

Investors looking for opportunities in scaled, EBITDA-positive companies now have access to a meticulously curated portfolio through NSF, backed by a team with deep sector knowledge and disciplined investing methodologies.

Overall, Neo Asset Management’s achievement of a Rs 750 crore first close in such a short time frame reflects strong investor confidence in their strategy and India’s burgeoning private equity market.

Stay informed about Neo Asset Management’s latest activities and fund updates to explore attractive investment opportunities in India’s private markets.

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