Prime Litmus Investment enters AIF Business with Launch of Prime Litmus Real Estate Opportunities Fund; Targets ₹1,000 Crore Corpus Including the Green Shoe Option

Prime Securities Ltd, a listed SEBI registered Merchant Banker, today announced its entry into the Alternative Investment Fund (AIF) management through its Group Company, Prime Litmus Investment Management Ltd., a joint venture between Prime Research and Advisory Ltd. (subsidiary of Prime Securities Ltd.) and Litmus Global Services LLP (Litmus).

Prime Securities’ strategic expansion into AIFs brings together the firm’s three-decade legacy in investment banking and financial services together with Litmus, a real estate-focused Investment Advisory firm with expertise in capital raising, M&A, and restructuring. Through Prime Litmus Investment Management Ltd., the joint venture has launched the Prime Litmus Real Estate Opportunities Fund, a Category II Alternative Investment Fund (AIF) focused on structured credit investments in under construction real estate projects.

The fund has a target corpus of Rs 750 crore along with a green shoe option of Rs 250 crore. The Category II AIF will focus on structured credit investments in self-liquidating real estate projects across India’s key metropolitan regions including Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru, Chennai, Hyderabad and Pune. A tenure of six years (extendable by one year), the Fund aims to deliver target IRRs (Internal Rate of Return) of 18–20% per annum, supported by conservative underwriting, rigorous due diligence, and strong asset management practices.

The fund will primarily invest in self-liquidating real estate projects with strong cash-flow visibility and robust security structures, partnering with established developers and targeting proven real estate markets with demonstrated depth and demand. The strategy aims to benefit from increasing demand in mid-tier and premium housing segments, alongside the growing institutionalization of the sector.

The investment committee comprises industry veterans across real estate investing, investment banking and asset management. The leadership team includes Rahul Rai-Managing Partner Prime Litmus, Akshay Gupta-Director, Prime Securities Ltd, and Apoorv Kumar – Managing Partner, Litmus.

Akshay Gupta, Director of Prime Securities Ltd. said: “The launch of our AIF business is Prime’s commitment to create and diversify investment platforms/solutions to address evolving investor needs. We believe the current market environment presents a compelling investment proposition for structured credit strategies, with its emphasis on capital preservation combined with disciplined underwriting, strong governance and downside protection can create attractive and predictable outcomes for investors."

Apoorv Kumar, Managing Partner at Litmus Global Services LLP mentioned that – “As sales patterns get concentrated and buyers increasingly demand quality and on-time delivery, need for intelligent capital solutions continue to grow. We intend to build a best-in-class Investment Management platform providing solution-oriented capital, delivering sustainable risk-adjusted returns, along with superior corporate governance and transparency.”

Prime Litmus, platform will focus on institutional-grade governance and risk oversight, supported by established ecosystem partners including ICICI Bank Ltd as custodian and fund accountant, Price Waterhouse Chartered Accountants LLP as auditor, and MITCON Credentia Trusteeship Services Ltd as trustee.

Source: Press Release