Prime Securities Group Launches INR 1,000 Crore Real Estate AIF
Prime Securities, a listed SEBI-registered merchant banker, has announced its entry into the alternative investment fund (AIF) segment through its group company, Prime Litmus Investment Management Ltd. The company has launched the Prime Litmus Real Estate Opportunities Fund, with a total target corpus of INR 1,000 crore, including a greenshoe option.
The Category II AIF has been launched with an initial target corpus of INR 750 crore and an additional greenshoe option of INR 250 crore. The fund will focus on structured credit investments in under-construction real estate projects across major property markets such as Mumbai Metropolitan Region, National Capital Region, Bengaluru, Chennai, Hyderabad, and Pune.
According to the company, the investment strategy will primarily target self-liquidating real estate projects backed by established developers. The fund will focus on projects with strong cash-flow visibility and robust security structures, reflecting the growing demand for structured financing solutions in the real estate sector.
The platform aims to generate annual returns of 18-20 per cent through a combination of conservative underwriting standards and active asset management practices. Structured credit funds have increasingly gained traction in India as developers seek alternative sources of funding amid tighter lending norms and growing institutional participation in the property market.
Prime Litmus Investment Management Ltd operates as a joint venture between Prime Research and Advisory Ltd, a subsidiary of Prime Securities Ltd, and Litmus Global Services LLP.
Commenting on the launch, Prime Securities Director Akshay Gupta said the fund marks an important step in the company's expansion into AIF management. He noted that India's real estate sector is witnessing a structural shift driven by consolidation, formalisation, and rising institutional investment. Gupta added that the launch reflects the group's efforts to broaden its investment platforms and offer solutions aligned with changing investor requirements.
Apoorv Kumar, Managing Partner at Litmus Global Services LLP, said the platform has been created to provide solution-oriented capital to real estate projects while maintaining strong standards of governance and transparency.
The launch comes at a time when institutional capital continues to play a larger role in India's real estate market. Alternative investment funds have emerged as a significant funding channel for developers, particularly in residential and mixed-use projects, as investors seek opportunities offering stable returns backed by underlying real estate assets.
