Alternative Investment Portfolio Update – June 25

June 2025 was marked by heightened geopolitical and macroeconomic tensions that influenced both Indian and global markets. The most significant global development was the military escalation between Israel and Iran, triggered by Israeli strikes on Iranian nuclear facilities and followed by a large-scale missile and drone retaliation from Iran on June 13.

The Nifty index reflected this uncertainty, dipping around the middle of the month before rebounding toward the end.

Back home, regulatory action dominated headlines with SEBI barring U.S.-based quant trading firm Jane Street from Indian markets. Accused of index manipulation and unlawful gains worth ₹4,746 crore (~$570 million), the firm was directed to disgorge profits and cease operations in India. While this action stirred short-term concerns about foreign institutional participation, the market reaction was surprisingly contained. Analysts view it as a clean-up effort rather than a systemic risk to foreign inflows, and broader indices held steady despite the news.

Globally, the U.S. continued to dominate the macro narrative. Former President Donald Trump escalated trade tensions by announcing plans to impose sweeping tariffs ranging from 10% to 70% on major trading partners starting August 1, unless new deals are struck by July 9. As a result, tariff revenues surged to $28 billion in June—up over 200% month-on-month—indicating that businesses are absorbing costs for now.

This also caused the Federal Reserve to pause its rate-cut plans, with Chair Jerome Powell citing tariff-driven inflation concerns. Despite the uncertainty, U.S. markets ended the month strong, buoyed by solid jobs data and resilient consumer sentiment.

From an investment perspective, June called for cautious optimism. Indian equities remained resilient, with IPO markets remaining active and benchmarks up ~14% YTD, though valuations appear stretched.

Investors should remain watchful of key events in early July—particularly U.S. tariff deadlines and any emerging trade deals with India or the EU—that could shape the direction of markets in Q3. Knowing the uncertainty around Trump’s behaviour, nothing can be ruled out!

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Alternative Investments, Defaults, and Delays

We have created a table to make it easy for everyone to track the latest status of ongoing delays and delays on various platforms and the current updates around them.

Currently, below are the key new updates on the various delays across Alternative Investment platforms.

• Tradecred Bizongo Complaint
• Grip AGS Transact
• Growpital Update

Tradecred Bizongo Complaint

Some recent bond covenant breaches are

• Sammunati
• Spandana Spoorthy
• Moneyboxx
• Trucap
• Finkurve
• Criss Financials
• Dvara KGF
• Lendingkart
• Satin

Most of the breaches have been in either microfinance or unsecured lending. Please note that covenant breach does not mean default; it means that some checks in the deal terms have been breached, hence investors get some additional benefit or rights to make an informed decision.

These breaches could be because of higher NPA, profitability dips, etc. For instance, in the case of Criss Financial, there is going to be an early redemption!

Alternative Investment Portfolio Updates

In our endeavour to enhance the knowledge around the Alternate Investment Funds in India, we covered sessions with experts on 2 Funds. We recently arranged a webinar with the experts also.

• Neo Special Credit Opportunity Funds
• Bharat Bhoomi Fund

Neo Special Credit Opportunities Fund

The fund is positioned as a high-yield, mid-market private credit vehicle, offering structured, collateral-backed lending to companies in need of tailored capital solutions. With an experienced team, substantial fundraising, and early deployment momentum, it targets attractive risk-adjusted returns (~22–24% gross) over a 5-year horizon. It suits investors seeking yield-rich, private debt exposure, with an emphasis on security and active management, but comes with meaningful illiquidity and execution risks.

Fund Overview

• Category: SEBI‑registered Category II AIF

• Maiden fund launched by Neo Asset Management Pvt Ltd.

• Target fund size: ₹2,000 cr; successfully closed at ₹2,575 cr from HNIs and MFOs over ~15 months

• Objective: Provide customized credit to mid‑market corporates facing special-situation funding needs, aiming for portfolio diversification and yield enhancement.

 Return Profile & Term

• Target gross IRR: ~22–24% p.a.; cash coupon: ~14–16% p.a. over 5-year tenor

• Tenure: ~5 years.

• Fund structures drawdowns and deploys capital via 3–4 scheduled drawdowns over a 12-month deployment phase

 Investment Strategy

• Focus on operating, EBITDA-positive, mid-market companies requiring bespoke credit — e.g., capex, acquisition, working capital, bridge, mezzanine/holdco financing

• Investments are secured, often with collateral, including inventory, receivables, fixed assets, and personal guarantees.

• Preference for strong promoters and structured risk mitigation: rigorous due diligence, strong documentation, external oversight, and active asset monitoring.

Fund Activity & Track Record

• Deployed capital into 12 investments with 2 successful exits within the first 15 months

• Example deal sizes: ~₹40–70 cr initiations with expected IRRs ranging 14–17%.

 Investment Team

• Led by CIO Puneet Jain, CEO Hemant Daga, and Chairman MD Nitin Jain, backed by >100 years of combined experience in structured credit and private debt.

• The team’s track record includes successful exits and strong performance (e.g. ≥8000 cr deployed across prior vehicles, 13–16% IRRs, zero defaults).

Risk & Disclaimer Highlights

• Fund carries high risk, including the potential for total capital loss.

• IRR figures are gross, before fees, carry, taxes,a expenses

• Investments are long-term, illiquid, and target sophisticated investors only.

You can register below to get access to the webinar and details about the product

Explore Neo Credit

Bharat Bhoomi Fund

Fund Structure: Category II AIF (Alternative Investment Fund)

• Target Corpus: ₹1,000 Cr with ₹1,000 Cr green-shoe option

• Fund Tenure: 5.5 years + 2 extensions (1 year each)

• Target Returns: ~22% pre-tax IRR p.a.

• Minimum Investment: ₹1 Cr

• Drawdowns: 20% upfront, remainder in 3–4 tranches

Theme & Opportunity

• Focused on urban land transformation & infra-backed development

• Leverages India’s National Infrastructure Pipeline (₹100+ lakh Cr) and real estate formalization

• Addresses demand in luxury villas, wellness homes, and integrated townships

• ESG-aligned with green buildings, low AQI zones, and energy-efficient construction

Core Investment Strategy

• Primary Focus (70–100%):

  • Plotted developments & villas

• Optional Allocation (0–30%):

  • Residential (mid/luxury), retail, data centres, warehousing, hospitality, renewables

Geographical Focus

• Tier-1 and infra-growth corridors:

  • Mumbai-MMR, Pune, Bengaluru, NCR, Chennai, Hyderabad

  • Jewar-Yamuna, Pune Ring Road, Navi Mumbai Airport, Pharma City

Investment Process

1. Deal Sourcing via proprietary networks

2. Screening & Due Diligence (legal, technical, financial)

3. IC Approval & Term Sheet

4. Documentation & Structuring

5. Post-Investment Monitoring

6. Exit via refinancing, sale, or cash flows

Sample Deal Pipeline

• Madhu Lunawat – Founder of The Wealth Company; co-founder of Pantomath Group

• Rakesh Kumar – Real estate veteran; ex-Jio, Walmart, Shell; led ₹25,000 Cr asset divestment

• Prasanna Pathak – 22+ years in asset management (Franklin Templeton, UTI, Taurus MF)

• Bhavya Bagrecha – CA, CS, ICWA; ₹2,500 Cr managed; real estate & REIT structuring expert

If interested in talking to their team, they can register below or ping us, and we can share details.

Bharat Bhoomi Enquiry

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Short-Term Investments

•  There has been no change in  I2Ifunding (Referral code discount50@i2i) as it is already following direct borrower lending. The returns have been around 14% to date. Now they are focusing on only one category, i.e, Urban Clap Loans.
• There was some delay in I2I, but it has been mostly resolved in the last week, and according to the platform that complete payment will happen this month.

 Equity Market

Pre-IPO Stocks

Last month, we highlighted that NSE was available at an INR 1550 price because of general volatility in the market. In less than 1 month, NSE is now trading at an INR 2200+ price in the secondary market. The same is the case with NSDL, which jumped from INR 1000 to 1250.

On the other hand, investors who bought HDB at crazy levels were surprised when the listing happened 30-40% lower price than they had paid!

Current hot deals in the Unlisted market are

• Physicswallah at INR 155
• Incred at INR 160

 Listed Stocks

In June 2025, the Indian stock market displayed strong undercurrents of optimism, particularly in broader markets, with smallcaps leading the charge. Investors rotated into high-growth, domestic-focused sectors like real estate, infrastructure, and mid-tier IT, reflecting confidence in India’s structural growth story and the government’s capital spending push. Meanwhile, defensives like FMCG took a backseat as risk appetite returned.

Globally, equity markets rebounded sharply from prior jitters, driven by easing trade tensions, resilient earnings, and central banks holding interest rates steady. Tech stocks in the U.S. surged, underpinned by AI momentum and semiconductor demand, while geopolitical tensions and oil price volatility remained key watchpoints. The overall sentiment was one of cautious optimism, as markets began pricing in a soft landing narrative across major economies.

We recently did an article on how tactical leverage can improve returns of portfolio

Option Trading

June was a great month with total returns of 2%. The impact of Jane Street going out has to be seen now. While overall spikes might go down but if liquidity drops, that can create other problems for traders.

Quantinsti is also one of the top quant trading course providers in India. Planning to cover a few more excellent trading courses.

Below is the video as part of the series on top traders.

Starters can explore tradetron as it requires a minimum learning curve and marketplace to copy or Bigul if they want to develop their own strategies.