New-age wealth and asset management firm Neo Asset Management Pvt Ltd said Wednesday it has raised $35 million (around Rs 300 crore) in a growth round from Peak XV Partners, the venture capital firm earlier known as Sequoia Capital India and Southeast Asia.
Neo will use the capital to catalyse growth initiatives, develop and expand the wealth management business, deepen the asset management franchise, and help attract top talent.
Neo, which was launched in 2021, claims to have more than 1,000 clients across HNIs (high-net-worth individuals), UHNIs (ultra-high net worth individuals) and multi-family office segments. It also serves global institutions such as pension funds, insurance companies, endowments, and sovereign wealth funds, among others.
It also claims that it has more than $3 billion (close to Rs 25,000 crore) in assets under advisement (AUA), including $360 million (around Rs 3,000 crore) in assets under management (AUM).
Neo was founded by Nitin Jain, who was previously chief executive officer of Edelweiss Wealth and Asset Management.
It provides clients, who are some of the top billionaires in the country, with advisory and yield-based investment solutions, the company said in a statement. It also provides yield-based alternative investment solutions focusing on the private credit and real assets space. In the near future, the company is aiming to be present across the entire risk-return spectrum.
“Wealth management in India, a $2.8 trillion industry, is a fertile market growing at a CAGR of 15 to 20% year-on-year. Nitin Jain and his team have decades of experience in the industry and are looking to build an institution of choice and trust for wealthy customers,” said Sakshi Chopra, managing director of Peak XV.
“In just a few years of launch, Neo has grown to manage Rs 20,000 crore in AUA in their wealth business and Rs 3000 crore in AUM in the asset management business. This partnership reflects our shared philosophy of doing good for people who repose faith in us with their capital,” she added.
Neo had launched a SEBI-approved category-II alternative investment fund (AIF), the Special Credit Opportunities Fund, in 2022. In September last year, it marked the first close of its maiden fund at Rs 625 crore (around $78 million) from domestic high-networth individuals (HNIs) and multi-family offices. It is aiming to raise Rs 800 crore with a greenshoe option of Rs 1,200 crore.