Private equity firm Neo Asset Management has concluded the initial round of INR 2,000 crores for its secondary fund, aimed at offering liquidity to initial investors and equity holders in mature, growth-oriented privately-held companies.
Neo Asset Management's Neo Secondaries Fund Targets Mature Indian Companies
Neo Asset Management, a leading player in India's private equity scene, has completed the first close of its flagship private equity vehicle, the Neo Secondaries Fund (NSF). The fund, which aims to raise a total corpus of INR 2,000 crore, is focused on investing in mature, high-growth unlisted Indian companies with positive EBITDA and proven revenue growth.
The NSF's investment approach is disciplined and strategic. It targets premium assets at appealing valuations, companies with strong fundamentals and clear exit plans. The fund evaluates individual asset deals and multi-asset portfolios aligned with its strategy, seeking alpha generation through acquiring quality assets. The fund's exit horizon is within 2-4 years post-investment.
The NSF has already made strides, having raised approximately INR 750 crore in under three months and closing three investments, including a multi-asset deal with a leading VC firm. The sectors the fund is investing in include consumer, technology, and AI/analytics.
Nitin Agarwal, a private equity veteran with over 24 years of experience, manages the Neo Secondaries Fund. Hemant Daga, CEO and Co-founder of Neo Group, stated that the fund offers investors exposure to a curated set of late-stage, market-leading companies.
Nitin Jain, Chairman & Managing Director of Neo Group, noted that private markets in India are maturing rapidly, and secondary transactions are becoming strategic. This fund reflects a growing trend in India’s private equity market towards secondary transactions as a preferred mode in a competitive environment for accessing quality assets.
In summary, the Neo Secondaries Fund is a strategic growth area for Neo Asset Management, aiming to provide liquidity to early investors and shareholders in mature, high-growth private businesses, while generating superior risk-adjusted returns. The fund is designed to meet this market need with a disciplined, opportunity-led approach.
- Neo Asset Management's strategy for the Neo Secondaries Fund involves investing in mature, high-growth Indian companies, particularly those in the consumer, technology, and AI/analytics sectors.
- Management at Neo Asset Management, led by private equity veteran Nitin Agarwal, aims to generate superior risk-adjusted returns by acquiring quality assets in a disciplined and strategic manner.
- The Neo Secondaries Fund is part of Neo Asset Management's growth strategy, offering investors exposure to a curated set of late-stage, market-leading companies, and reflecting the growing trend towards secondary transactions in India's private equity market.
