The round marks one of the bigger growth cheques that Peak XV has written this year after separating from its US-franchise Sequoia Capital, amidst an ongoing funding winter.
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Peak XV is expected to infuse another $15 million in the asset management firm over the next 12 months, subject to certain conditions, sources added.
The company is expected to use the capital to hire talent across geographies and grow its presence. It will also use the corpus raised to fund newer initiatives (in the asset management space) as well as to capitalise the group’s in-house non-banking finance company (NBFC) to provide credit to clients.
Founded in 2021 by Nitin Jain, former chief executive of Edelweiss Financial Services, Neo provides wealth advisory services to high and ultra-high net worth individuals as well as to domestic family offices.
“We have achieved some good traction than what we expected in a very short time and feel confident to now be a reasonable challenger to large firms in the country,” said Jain, who is also the chairman and managing director of Neo Group.
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Since launch, the company has close to $360 million (Rs 3,000 crore) in assets under management (AUM). On the asset management front, Neo works towards providing alternative investment solutions focusing on the private credit and real assets space such as real estate, energy and infrastructure.
In line with this, the company has launched two alternative investment funds including – Neo Special Credit Opportunities Fund and Neo Infrastructure Income Opportunities Fund.
Earlier this month, the Infrastructure Income Opportunities Fund announced its first close at Rs 600 crore from domestic high net worth individuals. Neo is aiming to make a final close of Rs 2,000 crore each for both these funds in the next six to nine months, Jain added.
Other business verticals under Neo Group include its wealth advisory business Neo World, which is under beta launch. It also operates Neo Wealth Partners, a dedicated platform for investment advisors, where it supports these wealth managers through technology and allows them to provide tailored wealth solutions to their clients.
“We felt the team here was really experienced and have a lot of shared values. Wealth management is a large market and it is growing at 15% to 20% CAGR (compound annual growth rate) and with new millionaires being added, we feel this industry will be growing at the same rate for many years,” said Sakshi Chopra, managing director, Peak XV Partners.
Neo Group is targeting to build an overall AUM of Rs 1 lakh crore (or roughly $12 billion) in the next 18 months.
