Prime Litmus Investment Management Ltd, a joint venture between Prime Research and Advisory Pvt Ltd (a subsidiary of Prime Securities Ltd) and Litmus Global Services LLP, has entered the alternative investment fund (AIF) space by launching a Category-II real estate debt fund, the companies said in a statement.
The Prime Litmus Real Estate Opportunities Fund has a target corpus of Rs 1,000 crore ($105 million), including a greenshoe option of Rs 250 crore. It will invest in under-construction real estate projects through structured credit investments.
The fund will focus on self-liquidating real estate projects across key metropolitan regions, including the Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru, Chennai, Hyderabad and Pune.
With a tenure of six years, which is extendable by one year, the fund aims to deliver an internal rate of return (IRR) of 18-20% per annum, supported by conservative underwriting, rigorous due diligence, and strong asset management practices, the statement said.
“The launch of Prime Litmus Real Estate Opportunities Fund represents an important milestone in Prime Securities’ expansion into alternative investment fund management,” said Akshay Gupta, director at Prime Securities. “India’s real estate sector is undergoing structural transformation led by consolidation, formalization and increasing institutional participation. The launch of our AIF business is our commitment to create and diversify investment platforms and solutions to address evolving investor needs.”
“We believe the current market environment presents a compelling investment proposition for structured credit strategies, with emphasis on capital preservation combined with disciplined underwriting, strong governance and downside protection,” Gupta added.
Apoorv Kumar, managing partner at Litmus Global Services, said the need for intelligent capital solutions continues to grow as sales patterns get concentrated and buyers increasingly demand quality and on-time delivery.
Speaking about the same, Rahul Rai, who has joined Prime Litmus Investment Management as managing partner, said, “As conventional funding avenues tighten for real estate developers, the demand for institutional structured capital is accelerating. At Prime Litmus, we aim to build a scalable, governance‑led alternatives platform to address India’s real estate growth opportunities starting with the credit business in under-construction projects and then expanding into other sectors.”
