Prime Litmus Investment Management Launches Real Estate Opportunities Fund
Prime Securities, a listed Sebi-registered Merchant Banker, has announced the launch of the Prime Litmus Real Estate Opportunities Fund, a Category II Alternative Investment Fund (AIF). This new fund is focused on structured credit investments in under-construction real estate projects and is managed by Prime Litmus Investment Management, a Group Company of Prime Securities.
The fund has a target corpus of Rs 750 crore, with a green shoe option of Rs 250 crore. The Category II AIF will primarily invest in self-liquidating real estate projects across India’s key metropolitan regions, including the Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru, Chennai, Hyderabad, and Pune.
With a tenure of six years (extendable by one year), the Prime Litmus Real Estate Opportunities Fund aims to deliver target Internal Rate of Returns (IRR) of 18–20% per annum. This is supported by conservative underwriting, rigorous due diligence, and strong asset management practices. The fund will invest in 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 investment committee comprises industry veterans across real estate investing, investment banking, and asset management. The leadership team includes Rahul Rai, Managing Partner of Prime Litmus; Akshay Gupta, Director of Prime Securities; and Apoorv Kumar, Managing Partner of Litmus Global Services LLP.
Akshay Gupta, Director of Prime Securities, commented, “The launch of Prime Litmus Real Estate Opportunities Fund represents an important milestone in Prime Securities’ expansion into the Alternative Investment Fund management. India’s real estate sector is undergoing structural transformation led by consolidation, formalization, and increasing institutional participation. 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, which can create attractive and predictable outcomes for investors.”
Apoorv Kumar, Managing Partner at Litmus Global Services LLP, added, “As sales patterns get concentrated and buyers increasingly demand quality and on-time delivery, the need for intelligent capital solutions continues 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. We are fortunate to have the best-in-class team to deliver Institutional-Grade Investment Management across asset classes and development cycles.”
Rahul Rai, Managing Partner of Prime Litmus Investment Management, stated, “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.”
The Prime Litmus platform will focus on institutional-grade governance and risk oversight, supported by established ecosystem partners. These include ICICI Bank Ltd as the custodian and fund accountant, Price Waterhouse Chartered Accountants LLP as the auditor, and MITCON Credentia Trusteeship Services Ltd as the trustee.
This launch underscores Prime Securities' commitment to expanding its investment platforms and addressing the evolving needs of investors in the dynamic Indian real estate market.
