Neo Infra Income Opportunities Fund II First Close at ₹1,500 Crore; Targets ₹5,000 Crore

Neo Alternative Asset Managers has announced the first close of its second infrastructure-focused fund, signalling continued investor interest in income-generating assets backed by stable cash flows. 

Fund Raise and Investment Strategy 

As per news reports, the firm has secured ₹1,500 crore in the initial close of Neo Infra Income Opportunities Fund II, with a target corpus of ₹5,000 crore. The strategy builds on its earlier infrastructure investments, focusing on operational assets that generate steady revenue streams. 

The fund will prioritise projects supported by long-term agreements, largely involving government-linked counterparties, offering predictable cash flows and reduced risk exposure. Roads and renewable energy have been identified as the primary sectors for deployment. 

Existing Portfolio and Asset Base 

Neo’s current infrastructure portfolio includes seven road assets and a renewable energy platform with a capacity of 430 MW.  

Its road portfolio features 6 hybrid annuity model projects across key corridors such as Delhi–Amritsar–Katra, Raipur–Visakhapatnam and Khammam–Devarapalli, covering more than 248 km. 

Additionally, it holds a 27.5 km operational stretch on the Chandigarh–Shimla highway developed under a build-operate-transfer model with established tolling history. 

On the renewable side, the firm owns SolarArise, a utility-scale platform spread across five states. These assets are backed by long-term power purchase agreements with a residual tenure of 21 years, largely tied to central government entities. 

Investor Interest and Market Context 

“The strong response to the first close of Neo Infra Income Opportunities Fund II reflects growing investor confidence in infrastructure income as a resilient asset class.  

In an environment where stability and yields are increasingly valued, high-quality infra assets continue to stand out as compelling long-term investments,” said Hemant Daga, co-founder-Neo Group & CEO- Neo Alternative Asset Managers. 

“We are seeing increasing investor appetite for well-structured infrastructure income opportunities, particularly those backed by strong cash flow visibility and government-linked contracts.  

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,” said Abishek Goel, Managing Director & Head – Infrastructure & Real Assets Fund, Neo Alternative Asset Managers. 

Scale, Backing and Outlook 

Neo manages over ₹25,000 crore in client assets and is supported by global investors including Peak XV Partners, Japan’s MUFG and Euclidean Capital LLC, along with a recent strategic investment from the TVS Group. The firm also has a dedicated infrastructure team of more than 50 professionals. 

With a strong pipeline across roads, renewable platforms and InvIT opportunities, the fund aims to capitalise on sustained demand for stable, income-oriented investments. 

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Conclusion 

The successful first close of Neo’s second infrastructure fund underscores steady investor appetite for long-term, yield-focused assets, with roads and renewable energy expected to remain central to its strategy. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Mutual Funds Investments are subject to market risks, read all the related documents carefully before investing.