Neo Prime Fund: Diversified Access to India’s Private Markets

Introduction

With a growing number of investors looking to generate attractive returns with reduced market risk, the search for viable alternate investment avenues is on. While stocks, deposits, or even real estate have their advantages and disadvantages, Neo Prime Fund offers a compelling proposition for those looking to build a diversified portfolio of private market assets with the comfort of a single investment.

Backed by Neo Group's Institutional Scale

SEBI-Registered Category II Alternative Investment Fund (AIF), Neo Prime Fund is backed by alternate assets major Neo Group, which manages ₹25,000+ crore AUM and ₹85,000+ crore assets under advisory. With institutional credibility and a proven track record, Neo Group has attracted the attention of global investors such as MUFG, Peak XV Partners, Euclidean Capital, TVS Capital Funds, and more.

Team and Investment Strategy

Led by Nitin Jain, Varun Bajpai, Hemant Daga, Puneet Jain, and a team of over 40 investment professionals, Neo Prime Fund has the expertise to sift through hundreds of deal opportunities to identify the most promising private market investments. The fund employs a multi-asset approach to diversify risk across Private Credit, Private Equity, Real Assets (REITs, InvITs), and Opportunistic Liquid Investments. This helps in balancing income generation and capital appreciation while ensuring exposure to multiple sectors and reducing dependence on any one asset class.

Return Profile

Neo Prime Fund, therefore, offers the dual advantage of income and growth with a target gross annualized return of 18-20% and an estimated annual cash distribution of 9-10% from the second year. The fund has already made 20+ core investments, committing over ₹355 crore to private markets in the first six months. At the same time, it has a robust pipeline of deals worth ₹190+ crore across sectors such as Financial Services, Consumer, Chemicals, Cement, Hospitality, and Telecom Infrastructure.

Conclusion

Neo’s alternate assets ecosystem has reviewed over 1,900+ deal flows in the last three years before zeroing in on the most promising opportunities. Neo Prime Fund has a liquidity window between year 2-5: A unique mid-term exit option not available to most Category II AIFs. Investors must commit a minimum amount of ₹1 crore to the fund, which uses a drawdown structure, essentially releasing investor money in installments throughout the tenure of the fund. For high-net-worth investors looking to gain exposure to India’s private markets with better portfolio diversification, Neo Prime Fund presents an attractive opportunity.

Disclaimer: This article is intended solely for informational and educational purposes and should not be considered investment advice or a recommendation to invest in the Neo Prime Fund or any other financial product. Investments in AIFs and other market-linked instruments are subject to market risks. Please read all relevant offering documents carefully.

Source: Neo prime fund presentation