New Delhi, March 20 -- Mumbai-based Neo Wealth and Asset Management said Friday it has raised Rs 500 crore ($53.3 million) from private equity firm TVS Capital at a pre-money valuation of Rs 10,000 crore.

The Neo Group will deploy the fresh capital to accelerate its growth, it said in a statement.

The deal marks TVS Capital's first investment in the wealth management sector. The PE firm, which is raising its fourth fund, has previously invested in several financial services and fintech companies. These include PhonePe, Saarathi Finance, Go Digit General Insurance, InsuranceDekho, Vivriti Capital, Five-Star Business Finance, Suryoday Small Finance Bank, DCB Bank, and RBL Bank.

TVS Capital joins venture capital firm Peak XV Partners (formerly Sequoia Capital India and Southeast Asia), Japan's MUFG Bank and New York-based Euclidean Capital as an investor in Neo Group. The group raised Rs 300 crore from Peak XV in October 2023 and Rs 400 crore in a round led by MUFG and Euclidean in August 2024.

"Our objective has always been to build an enduring institution with strong governance, disciplined capital allocation and client-first alignment. The continued participation of high-quality investors reinforces confidence in our platform and our long-term strategy," said Nitin Jain, Chairman and Managing Director, Neo Group.

Jain, who started Neo in 2021, previously worked for about 17 years with Mumbai-based financial services group Edelweiss. He was chief executive of Edelweiss Wealth Management when he quit in 2021.

Neo Group said it has about Rs 1 trillion in total client assets and Rs 50,000 crore of annualised recurring revenue assets under management (ARR AUM).

The group comprises Neo Investment Value Advisors Pvt Ltd, which is the holding company, and several subsidiaries including Neo Wealth Management Pvt Ltd, Neo Asset Management Pvt Ltd, Neo Advisory and Consulting Services Pvt Ltd, and Neo Risk Management and Insurance Brokers Pvt Ltd.

Neo Wealth Management operates with nearly 150 senior wealth advisors catering to ultra-high-net-worth individuals and family offices. Neo Asset Management complements this with a team of executives that manage private credit, infrastructure and private equity funds.

Published by HT Digital Content Services with permission from VC Circle.