# Pitch Deck Extraction fund_overview_and_terms Response ## Technical Context - **Task Name**: Pitch Deck Extraction - fund_overview_and_terms - **Workflow Run ID**: 25 - **Timestamp**: 2026-07-16T09:41:15.084Z ## Grounded Intelligence Data # Fund Overview and Terms ### 1. Formal Fund Name and Management Company * **Formal Fund Name:** Neo Infra Income Opportunities Fund II (NIIOF-II) `[Page 1, 18]` * **Fund Sponsor / Parent Group:** Neo Group `[Page 3]` * **Investment Manager:** Neo Asset Management Private Limited `[Page 37]` * **Group Key Metrics (as of February 2026):** * Assets under Advisory (AUA): ~₹70,000 Crores `[Page 3]` * Assets under Management (AUM): ~₹20,000 Crores `[Page 3]` * Net Worth: ₹2,000 Crores `[Page 3]` * Team Experience: 250+ Years of collective experience across 65+ members `[Page 3]` * Core Institutional Backing / Partnerships: Mitsubishi UFJ Financial Group (MUFG, Japan), Peak XV (formerly Sequoia India, SEA), and Euclidean Capital (USA-based family office) `[Page 3]` --- ### 2. Fund Categorization and Legal Structure * **Regulatory Classification:** SEBI registered Category II Alternative Investment Fund (AIF) `[Page 37]` * **Structure:** Close-ended `[Page 37]` * **Primary Asset Class:** Real Assets / Infrastructure (specifically operating road and solar assets) `[Page 4, 7, 37]` * **Domicile / Jurisdiction:** India (regulated under SEBI AIF Regulations) `[Page 37, 51]` * **Target Fund Size:** ~INR 5,000 Crores `[Page 19, 37]` * **Expected IRR:** ~18–20% p.a. (Gross Portfolio target) `[Page 19, 20, 37]` * **Return Profile:** Coupon Distribution + Capital Appreciation `[Page 37]` --- ### 3. Fund Term and Investment Timeline * **Total Fund Term:** 7 years from the date of First Close `[Page 37]` * **Investment / Reinvestment Period:** 4.5 Years from Initial Close `[Page 37]` * **Balance Exit Period:** 2.5 Years `[Page 37]` * **Drawdown Profile:** Total of 6 drawdowns `[Page 37]` * **Drawdown Process Schedule:** * A formal Drawdown Notice is issued to investors `[Page 38]`. * LPs have **15 Business days** to contribute from the notice date `[Page 38]`. * A **5 days grace period** to contribute is provided post the business-day deadline `[Page 38]`. * The Fund subsequently executes the target investment `[Page 38]`. --- ### 4. Key Service Providers * **Fund Auditors:** EY (Ernst & Young) `[Page 37]` * **Fund Legal Counsel:** Trilegal `[Page 37]` * **Tax Advisors:** PWC (PricewaterhouseCoopers) `[Page 37]` * **Custodian:** ICICI Bank `[Page 37]` * **Registrar and Transfer Agent (RTA):** Kfintech `[Page 37]` --- ### 5. Detailed Fee Structure, Hurdle Rate, and Carried Interest The fund offers four distinct classes of units based on the size of the LP contribution, structured as follows: | Class of Units | Individual LP Contribution Range | Management Fees (p.a.) | Carried Interest (without catch-up) | Hurdle Rate | | :--- | :--- | :--- | :--- | :--- | | **Class A1** | INR 1 Crore to 2.99 Crores | 2.00% | 20.0% | 10% p.a. | | **Class A2** | INR 3 Crores to 9.99 Crores | 1.75% | 15.0% | 10% p.a. | | **Class A3** | INR 10 Crores to 24.99 Crores | 1.50% | 12.5% | 10% p.a. | | **Class A4** | INR 25 Crores & above | 1.25% | 10.0% | 10% p.a. | *Source: [Page 38]* --- ### 6. Target Strategy and Sectoral Focus * **Sectoral Concentration:** Operating Road and Renewable Energy (Solar) assets `[Page 19, 37]`. * **Primary Strategy (~80% of the Fund):** * Direct acquisition of operating solar and road assets with highly creditworthy central government counterparties (such as NHAI, NTPC, SECI, MORTH) `[Page 14, 20, 21]`. * Avoids greenfield risk, investing solely in completed, operating projects `[Page 15, 16]`. * Targeted gross returns from the primary strategy: ~20–21% p.a. `[Page 20, 21]` * **Secondary Strategy (~20% of the Fund):** * Investment in Privately Listed InvITs (Infrastructure Investment Trusts) and others (opportunistically evaluating last-mile secured credit for construction assets/other infra sub-sectors) `[Page 20, 22]`. * Targeted gross returns from the secondary strategy: ~18–19% p.a. `[Page 20, 22]` * **Estimated Number of Portfolio Investments:** 20 to 22 investments `[Page 37]`. --- ### 7. Fund Manager Maturity and Pedigree Based on the metrics provided in the deck, Neo Asset Management qualifies as an **Established** institutional platform in the Indian alternative space: * **Operating Platform Scale:** The founding team has collectively managed/supervised assets worth over **INR 3,00,000 Crores** over their careers `[Page 5]`. * **Track Record (Fund I):** Neo successfully closed its predecessor fund, Neo Infra Income Opportunities Fund I (NIIOF-I), with a fund size of **INR 2,300 Crores** (and total deals worth INR 2,985 Crores completed/committed) tracking a gross IRR of ~21% `[Page 13, 17]`. * **Platform Team Depth:** Built a specialized 33-member infrastructure team, featuring two ex-CEOs of India's largest roads platforms, a solar head who has built 2 GW of capacity, and an investment committee that has managed India's first domestic and first offshore infrastructure funds `[Page 27]`. --- ### 8. Explicit Risk Disclosures and Mitigation Framework The fund highlights specific macro and operational risk classes alongside corresponding structural guardrails: * **Construction Risk (Cost/Time Overruns):** Mitigated by investing only in operating projects and restricting construction exposure to senior secured credit structures `[Page 24]`. * **Operating Risk (Performance Issues):** Mitigated by focusing on highly stable roads & solar sectors, performing rigorous due diligence (two independent laboratories testing), and maintaining robust force majeure insurance `[Page 24, 28]`. * **Financing Risk (Poor Asset-Level Structures):** Mitigated by eliminating Asset-Liability Match (ALM) risks, enforcing conservative asset-level leverage, and maintaining high credit ratings `[Page 24]`. * **Counterparty Risk (Delayed Payments):** Mitigated by ensuring ~70-80% of the operating assets have strong central government counterparties (e.g., NHAI, NTPC, SECI) or top-rated state government entities `[Page 14, 24]`. * **Regulatory Risk (Adverse Policy Changes):** Mitigated by focusing exclusively on sectors (Roads & Solar) that have long regulatory stability histories and robust protections backed by substantial international institutional investment `[Page 24]`. * **LP Liquidity & Loss Warnings:** General disclaimers note that an investment in the fund is suitable only for sophisticated investors who have the financial capacity to bear the high risk and illiquidity inherent in private market alternative assets. LPs are warned of the potential loss of a substantial portion, or the entirety, of their committed capital `[Page 51, 52]`. * **Net Return Warning:** Target returns are presented on a "gross" basis, meaning they do not reflect the downward impact of management fees, carried interest, taxes (withholding or capital gains), broken-deal expenses, or fund administration fees `[Page 52]`.