Neo Alternative Achieves First Close of Rs 1,500 Crore, Aims for Rs 5,000-Crore Infrastructure Fund

Neo Alternative Asset Managers Reaches First Close of Rs 1,500 Crore for Neo Infra Income Opportunities Fund II

Neo Alternative Asset Managers (NAAM) Private Limited announced the first close of its Neo Infra Income Opportunities Fund II, having raised Rs 1,500 crore on April 29. The company is targeting a final fund size of Rs 5,000 crore.

The second fund will continue to build upon Neo's track record in infrastructure income strategies, with a focused approach towards investing in operational, revenue-generating infrastructure assets backed by long-term contracted cash flows from highly creditworthy government counterparties. The fund will primarily invest in the roads and renewables sectors.

In an environment where stability and yields are increasingly valued, Neo's infrastructure portfolio stands out as a compelling long-term investment opportunity. The company's infrastructure portfolio spans seven road assets and a 430 megawatts (MW) renewable platform.

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Its road portfolio includes six NHAI HAM projects in key corridors such as Delhi-Amritsar-Katra, Raipur-Visakhapatnam, and Khammam-Devarapalli, covering over 248 km, alongside a 27.5 km operational stretch on the Chandigarh-Shimla highway under a build-operate-transfer (BOT) model with a proven tolling history. The first fund also owns SolarArise, a utility-scale solar platform with assets across five states, backed by long-term power purchase agreements (PPAs) with a 21-year residual life, offering stable cash flows and visibility, with most capacity tied to central government counterparties.

The firm has a dedicated infrastructure team of over 50 professionals. At NAAM, the focus remains on disciplined capital allocation and execution excellence. Neo's experience across roads and renewable assets, combined with a strong pipeline of opportunities, positions the company well to scale this strategy while maintaining consistency in performance and risk management.

Investor interest in infrastructure income strategies remains strong, supported by huge potential including a significant pipeline of road projects, renewable energy platforms, and InvIT issuances coming to market. Neo, which manages over Rs 25,000 crore of client assets, is backed by global investors such as Peak XV Partners, Japan's MUFG, and New York-based Euclidean Capital LLC. Recently, Neo announced a strategic investment from the TVS Group.

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"We are seeing increasing investor appetite for well-structured infrastructure income opportunities, particularly those backed by strong cash flow visibility and government-linked contracts," said Abishek Goel, Managing Director & Head – Infrastructure & Real Assets Fund, Neo Alternative Asset Managers. "Our approach combines deep sector expertise with rigorous asset selection and active asset management, enabling us to build a portfolio that balances yield, quality, and longevity."