NEO CREDIT INVESTMENT TRUST

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Category AIF Category II

Company Neo Asset Management

Fund Managers Nitin Jain

Neo Asset Management

Neo Asset Management is an arm of Neo Group that provides credit and fixed income solutions to client needs across various asset classes in India. They provide capital solutions to stabilize companies and help them grow while producing attractive returns for investors. Neo Asset Management caters to pension funds, insurance companies, large family offices, HNIs, and UHNIs. To have a constructive impact on the Indian economy by providing a flow of essential long-term credit solutions to companies and businesses that contribute to the sustainable growth of the economy and society. To provide superior risk-adjusted inflation-beating long-term returns to our investors through efficient and responsible capital management with a focus on capital preservation.

Core Investment Principles

Quality and Fundamentals: The firm prioritizes the credit quality, structure, and downside protection of investments over simply chasing high yields.
Bespoke Solutions: They specialize in providing customized capital support to businesses, helping them unlock growth or manage complex financial situations.
Disciplined Underwriting: Their process includes rigorous qualitative and quantitative analysis, emphasizing security cover, favorable covenants, and clear sources of repayment.
Active Monitoring: A strong framework for monitoring and enforcement is established at the start of every investment, including regular risk reviews and account conduct checks.

Key Investment Frameworks

Neo utilizes specific frameworks to guide their selection and evaluation processes:

3I Framework: Evaluates Investment Style (disciplined vs. opportunistic), Investment Quality (real credit strength), and Investment Consistency (sustainability of income).
SOUL Framework: Focuses on Strategy (sound structure), Outperformance (stable return profile), Underlying Risk (downside scenarios), and Liquidity (capital behavior over time).
Credit Selection Matrix: A structured assessment for fixed-income products (like the Neo Yield Enhancer) that weights factors such as capitalization (25%), governance (20%), liquidity (15%), business strength (15%), profitability (15%), and asset quality (10%).

Strategy-Specific Philosophies

Private Credit: Focuses on secured Non-Convertible Debentures (NCDs) and structured deals to provide predictable, stable income.
Infrastructure: Invests exclusively in operating assets (like roads and renewables) with long-term contracts, predictable cash flows, and inflation protection.
Secondary Markets: Targets EBITDA-positive market leaders with consistent revenue growth (~20% CAGR) and clear exit pathways within 24–48 months, typically acquiring them at a 10–15% discount to fair market value.