Prime Securities Launches Prime Litmus Real Estate Opportunities Fund with ₹1000 Crore Target
Prime Securities has expanded its horizons into the alternative investment fund (AIF) management sector through its group company, Prime Litmus Investment Management. The company has launched the Prime Litmus Real Estate Opportunities Fund, a Category II AIF with an ambitious target corpus of ₹750 crore and a green shoe option of ₹250 crore.
The newly launched fund will focus on structured credit opportunities in under-construction real estate projects across major property markets in India, including the Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru, Chennai, Hyderabad, and Pune. This strategic move aims to capitalize on the robust demand for real estate in these key cities.
Prime Litmus Investment Management is a joint venture between Prime Research and Advisory, a subsidiary of Prime Securities, and Litmus Global Services LLP, a real estate-focused investment advisory firm. The fund will prioritize investments in self-liquidating projects with visible cash flows and security-backed investment structures. It will primarily partner with established developers and target residential projects in markets with demonstrated demand.
The fund has a tenure of six years, with an option to extend by one year. It aims to generate annual internal rates of return (IRRs) of 18-20%, contingent on market conditions and investment performance. This ambitious target reflects the confidence of Prime Securities in the Indian real estate market and the strategic partnerships it has forged.
The launch of the Prime Litmus Real Estate Opportunities Fund marks Prime Securities' diversification into asset management and alternative investment products, complementing its existing investment banking and financial services businesses. The investment committee and leadership team include seasoned professionals with extensive experience in real estate investing, investment banking, and asset management.
Rahul Rai, Managing Partner at Prime Litmus, will lead the platform, supported by Akshay Gupta, Director at Prime Securities, and Apoorv Kumar, Managing Partner at Litmus Global Services. The team is committed to operating with institutional governance and robust risk management frameworks to ensure the fund's success.
The fund's ecosystem partners include ICICI Bank as custodian and fund accountant, Price Waterhouse Chartered Accountants LLP as auditor, and MITCON Credentia Trusteeship Services Ltd. as trustee. These partnerships underscore the fund's commitment to transparency and accountability.
Alternative Investment Funds (AIFs) are privately pooled investment vehicles regulated by the Securities and Exchange Board of India (SEBI). Category II AIFs typically invest in sectors such as private equity, debt, and real assets, and do not engage in leverage except for operational requirements permitted under regulations. The launch of the Prime Litmus Real Estate Opportunities Fund is a significant step in the evolution of the Indian real estate investment landscape, offering investors a new avenue to participate in the growth of the sector.
