India-based Neo Asset Management has reached the final close of its flagship Neo Infrastructure Income Opportunities Fund (NIIOF) at INR 23bn (USD 268.4m).

NIIOF closed above its initial target of INR 20bn, according to a press release emailed by Neo Asset Management on 8 July. The fund invests in operating solar power generation plants as well as operational roads with concessions awarded by the National Highways Authority of India (NHAI).

In January 2024, Infralogic reported that Mumbai-based Neo Asset Management was the highest bidder to take over a 27km toll road on NH05 (Chandigarh–Shimla highway) running through the states of Punjab, Haryana, and Himachal Pradesh. In conjunction with the final close, NIIOF has also acquired this road asset.

The fund has already committed INR 12bn of investments across diversified roads and solar portfolios, and is evaluating more assets contracted by the NHAI with an equity value of more than INR 20bn.

Press Release:

Neo Asset Management has announced successful final close of its flagship infrastructure fund, the Neo Infrastructure Income Opportunities Fund (NIIOF). The NIIOF is a SEBI Registered Category II Alternative Investment Fund (AIF), that invests into operating solar power generation plants and operating NHAI roads projects. The fund exceeded its original target of Rs 2,000 crore, raising Rs 2,300 crores, underscoring growing investor confidence in Neo’s infrastructure strategy and execution capabilities. The fund closure comes at a time of accelerating domestic investor interest in India’s infrastructure sector, fuelled by structural tailwinds such as the need for long-term capital in core assets, favourable regulatory environment, the growing role of private capital in nation-building, and an expanding pipeline of high-quality, operating infrastructure projects across roads and renewables.

In conjunction with the final close, NIIOF has also closed acquisition of its first road asset — a 27.5 km toll road on NH05 (Chandigarh–Shimla highway). With more than 13 years of operating history, good construction quality and robust traffic, the road project is expected to generate healthy cashflows for the fund and its investors.

The Neo Infrastructure Income Opportunities Fund is designed to allow investors to directly take exposure to high-quality operating infrastructure assets generating predictable and contracted cashflows. The fund focuses only on operating roads and renewables projects with highest creditworthy counterparties such as central government entities. The fund has already invested/ committed Rs 1,200 crore of investments across a variety of diversified road and solar portfolios, and is evaluating highways/ expressways projects of National Highways Authority of India (NHAI) having equity value of more than Rs 2000 cr. This strategy offers a compelling blend of stable income through regular distributions and long-term value creation in sectors critical to India’s infrastructure growth story.

Hemant Daga, CEO & Co-Founder – Neo Asset Management, said: “India’s emergence as the fourth-largest global economy is a defining moment. At Neo, we are committed to shaping this growth story by channelling long-term capital into the real economy. The successful close of NIIOF marks a key milestone. Infrastructure remains a core pillar of India’s growth, and with NIIOF, we’ve created a platform for domestic investors to access high-quality, operating assets—previously limited to global players.”

Abishek Goel, Managing Director and Fund Manager – Neo Infrastructure Income Opportunities Fund, said: “Our infrastructure investment strategy allows investors to participate in the excellent work being done by the Government to improve the infrastructure of the country. Through our fund, investors can not only generate a superior risk adjusted return but also contribute to nation building. That’s why investors have been very enthusiastic about our fund which has led to this successful fund raise. We are very grateful to all our investors for trusting us with their capital. We are now single mindedly focused on securing the best deals across roads and renewables to drive superior outcomes for our investors.”

The fund closure and road asset acquisition represent a significant milestone in Neo Asset Management’s journey. With over Rs 13,500 crores in assets under management (AUM), Neo continues to deepen its presence across the alternative yield space—spanning infrastructure, performing credit, special situations, and structured debt solutions. Through disciplined execution, strong sponsor alignment, and a focus on investor outcomes, Neo is poised to lead the next phase of India’s alternatives evolution.