The fund will focus on operational infrastructure assets that generate steady revenues backed by long-term contracts, largely involving government counterparties.
Neo Alternative Asset Managers has announced the first close of its second infrastructure income fund, raising INR 1,500 crore against a target corpus of INR 5,000 crore, signalling continued investor interest in income-generating infrastructure assets.
The fund, named Neo Infra Income Opportunities Fund II, will focus on operational infrastructure assets that generate steady revenues backed by long-term contracts, largely involving government counterparties.
The strategy is aimed at sectors such as roads and renewable energy, where cash flows are relatively stable and predictable over long periods.
The company said the fund is designed to offer investors an alternative to traditional fixed income products by providing long-duration visibility of returns. It will primarily invest in operating assets while also allocating a portion of capital to opportunities like privately listed infrastructure investment trusts (InvITs), helping diversify the portfolio.
Neo Alternative Asset Managers (NAAM), which manages over INR 25,000 crore in assets, has prior experience in this space. Its earlier infrastructure fund invested in National Highways Authority of India’s Hybrid Annuity Model (HAM) road projects as well as utility-scale solar platforms.
Commenting on the development, co-founder and CEO Hemant Daga said, “The strong response to the first close reflects rising investor confidence in infrastructure income as an asset class.” He added, “In an environment where stability and yields are increasingly valued, high-quality infrastructure assets continue to stand out as compelling long-term investments.”
The firm also highlighted its growing presence in the sector, supported by a dedicated team of over 50 professionals and a pipeline of opportunities across roads, renewable energy and InvIT issuances.