The newly launched Prime Litmus Real Estate Opportunities Fund will invest in structured credit opportunities in under-construction real estate projects across major property markets, including the Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru, Chennai, Hyderabad and Pune.
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.
According to the company, the fund will focus on 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%, subject to market conditions and investment performance.
The launch marks Prime Securities’ diversification into asset management and alternative investment products, adding to its existing investment banking and financial services businesses.
The investment committee and leadership team include professionals with experience across real estate investing, investment banking and asset management. The platform will be led by Rahul Rai, Managing Partner at Prime Litmus, along with Akshay Gupta, Director at Prime Securities, and Apoorv Kumar, Managing Partner at Litmus Global Services.
Prime Litmus said the platform will operate with institutional governance and risk management frameworks. 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.
Alternative Investment Funds 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 undertake leverage except for operational requirements permitted under regulations.
