Singapore-based Peak XV Partners is finalising an investment of up to $50 million in Neo Group, an asset management firm started by former Edelweiss executives.
The deal may see Peak XV Partners lead or fully finance a funding round in Neo Group, which provides private credit and fixed income solutions to institutional and retail clients in India. The Mumbai-based investor also runs a multi-family office and financial advisory arm.
DealStreetAsia understands that the deal is going through due diligence by Peak XV’s investment team. This development was first reported by Tech Crunch.
Neo Group was founded by a group of former Edelweiss executives, including its ex-chief executive Nitin Jain, in late 2021. The group was reportedly managing over $1 billion in assets by mid-2022, having earlier raised about $40 million from investors, according to reports.
The move by Peak XV Partners to invest in Neo Group also indicates the venture capital investor’s intention to create exposure and expertise in private credit, an emerging asset class in India and Southeast Asia.
The reduced availability of private equity has created new demand for private credit solutions among businesses. The market, however, continues to experience a significant gap in credit options, creating vast opportunities for new players to enter what is essentially still an underserved market in India and Southeast Asia.
Private credit investors have been eyeing the opportunity recently, including the likes of Baring Private Equity Asia (BPEA) Credit, which has opened an office in Singapore last year, in addition to New Delhi and Mumbai in India. Its third fund was three times larger than its predecessor fund. It closed BPEA Credit – India Fund III at $475 million last year.
Other players launching new credit funds in India include Blackstone-backed ASK Private Wealth with its new $120-million fund; 360 Asset Management with its oversubscribed $258-million credit fund; and Mumbai-based Centrum Alternatives which has plans to launch its second private credit fund.