NEO Infra Income Fund

Neo Asset Management’s investment philosophy centers on delivering sustainable, long-term value to investors by capitalizing on high-growth opportunities in India’s infrastructure sector while emphasizing stability and risk mitigation. The firm believes in the power of disciplined, strategic investing to generate consistent returns, and its approach is guided by the following core principles:

1. Focus on Resilient, High-Potential Sectors: Neo Asset Management targets infrastructure sub-sectors such as roads and renewables, which benefit from established regulations, historical success, and strong government support. These sectors provide predictable cash flows and inflation-protected returns, ensuring resilience against market volatility.
2. Minimal Risk through Strategic Counterparty Selection: By positioning the government as its primary counterparty, Neo Asset Management minimizes investment risk, leveraging the stability and reliability of public-sector partnerships to safeguard investor capital.
3. Diversification for Stability and Growth: The firm maintains a diversified portfolio, allocating 20–25% to privately listed assets and 75–80% to the acquisition and aggregation of operating assets. By spreading investments across 10–12 opportunities, Neo Asset Management balances risk while capturing growth in India’s infrastructure landscape.
4. Commitment to Regular Income and Attractive Returns: Neo Asset Management prioritizes steady cash flows and regular distributions, offering semi-annual coupons of 9–10% alongside a target IRR of 18–20%. This dual focus ensures both income generation and capital appreciation for investors.
5. Proven Expertise and Track Record: Led by a team with over 19 years of experience in capital markets and financial services, Neo Asset Management draws on its deep industry knowledge and a history of successful exits—such as those with KKR, Actis, and Global Infrastructure Partners—to drive value creation and deliver results.

The firm’s philosophy is rooted in the belief that infrastructure in India, with its projected INR 8 lakh crore equity capital influx over the next five years, presents a unique opportunity for investors. By combining rigorous due diligence, a focus on operating assets, and a commitment to sustainable growth, Neo Asset Management seeks to unlock this potential while ensuring financial security and superior returns for its stakeholders.

Neo Asset Management demonstrates a distinct competitive edge through its Neo Infrastructure Income Opportunities Fund, underpinned by three key pillars: cost efficiency, exit experience, and deal-sourcing capabilities.

• Cost Efficiency: The fund offers significant cost savings, with an annual expense of INR 2–2.5 lakhs per annum, translating to overall savings of INR 14–18 lakhs over its tenure. This cost-effective structure enhances investor returns by minimizing overheads.
• Exit Experience: The investing team at Neo Asset Management brings proven expertise, having played a pivotal role in four successful large exits out of the last six in India. This track record underscores the firm’s ability to deliver strong returns through strategic exits, as evidenced by past successes with investors like KKR, Actis, and Global Infrastructure Partners.
• Deal-Sourcing Competition: With a target deployment of INR 2,000 crore, the fund operates in a space with limited competition for deals ranging from INR 150–200 crore. Unlike larger global funds and InvITs that focus on bigger assets, Neo Asset Management’s focused approach allows it to efficiently source and secure high-potential opportunities in India’s infrastructure sector.

Through its cost-effective operations, deep exit experience, and strategic deal-sourcing capabilities, Neo Asset Management positions itself as a leader in delivering value to investors in the infrastructure investment landscape.