Neo Raises INR 400 Crore in Latest Funding Round Led by MUFG and Euclidean Capital

2024-11-22 12:00:57 Business

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12 August 2024: Neo Group, one of India's most premium Wealth and Asset Management firms, has raised INR 400 crore in its latest funding round led by MUFG Bank, Ltd. (MUFG) Japan's premier bank, and New York-based Euclidean Capital LLC. Additionally, Neo Group's existing investor Peak XV Partners (formerly Sequoia India), that had recently invested $35m in Oct 2023, has also participated in this round, a sign of their continued confidence in Neo's journey.

The raised funds will be used to expand Neo's substantial Wealth Management division and enhance sponsor support for its rapidly growing Asset Management business. The firm has built a reputation for creating a differentiated, focused and highly specialised platform for the larger and more sophisticated clients in India, in sharp contrast to generic wealth management services available.

Shashank Joshi, Deputy CEO for MUFG India, said – "India's wealth management sector is set for rapid growth, offering a significant opportunity. A high growth economy drives the need for advanced, personalized wealth management solutions. We are excited to partner with the Neo management team, who have impressively grown their AUA to INR 35,000 crore in wealth management business and INR 6,000 crore in AUM in their asset management business. This investment marks MUFG Bank's first investment in wealth management in India, furthering the Neo growth expansion."

New York-based investment management firm Euclidean Capital said, "As demand for high-quality wealth and asset management services takes off in India, we are excited to partner with Neo's experienced leadership team to develop a differentiated solution built to scale."

Neo Group manages nearly INR 35,000 crore in Wealth Management assets, over INR 6,000 crore in Alternative Asset Management and now is significantly capitalised with approximately INR 1,000 crore in equity capital, demonstrating both scale and impressive profitability. The firm is now being recognised as the Wealth and Asset Management platform of choice by some of the biggest and most sophisticated clients in India, differentiated by its exceptional team, deep investing specialisation, and full alignment with client interests as its core philosophy in every part of its business model. Neo's belief in deep knowledge based and specialised solutions rather than a sales-push led, mass market strategy distinguishes it sharply from existing players.

Commenting on the fundraise, Nitin Jain, Chairman & Managing Director, Neo Wealth and Asset Management shared, "This capital takes our equity base to 1,000 crore and marks a fantastic close to all equity fundraise requirement in NIVA. We are really excited to partner with some of the finest global institutions and continue to stay committed to deliver world class investment products and solutions in an unbiased, transparent, and cost-efficient manner."

Launched in 2021, Neo serves clients across the HNI, UHNI, and multi-family office segments. The firm offers comprehensive financial advisory and engagement and using their deep technology capabilities is creating a platform for transactions and consolidated portfolio reporting across various products, asset classes, and instruments. Focused in the areas of Credit and Real Assets, the platform has also successfully launched bespoke funds that provide capital solutions to companies, helping them grow, while producing attractive, best in class, risk adjusted returns for investors.

About Neo:

Neo is a new-age, focused Wealth and Asset Management firm in India, catering to HNIs, UHNIS and multi-family offices. Neo stands on its three pillars of unbiased advisory, transparency and cost-efficiency, to offer comprehensive, trustworthy solutions. Additionally, it also serves global institutions such as pension funds, insurance companies, endowments, Sovereign Wealth Funds etc. who are looking to participate in India's long-term growth.