Key facts
- Prime Litmus Investment Management launched the Prime Litmus Real Estate Opportunities Fund, a Category II AIF.
- The fund will focus on structured credit investments in under-construction real estate projects.
- The target corpus is Rs 750 crore, with an additional Rs 250 crore green shoe option.
- Investments will be made in self-liquidating projects across major Indian metropolitan regions.
- The fund aims to deliver target Internal Rates of Return (IRRs) of 18-20% per annum.
Prime Securities, a Sebi-registered Merchant Banker, announced the launch of the Prime Litmus Real Estate Opportunities Fund through its group company, Prime Litmus Investment Management. This Category II Alternative Investment Fund (AIF) is designed to focus on structured credit investments within under-construction real estate projects across India's major metropolitan areas. The fund has set a target corpus of Rs 750 crore, with an additional green shoe option of Rs 250 crore. With a tenure of six years, extendable by one year, the fund aims to achieve target Internal Rates of Return (IRRs) between 18% and 20% annually. Its investment strategy centers on self-liquidating real estate projects that exhibit strong cash-flow visibility and robust security structures, partnering with established developers in proven markets. The strategy seeks to capitalize on the increasing demand in mid-tier and premium housing segments and the overall institutionalization of the real estate sector. The investment committee comprises industry veterans, and the leadership team includes Rahul Rai, Akshay Gupta, and Apoorv Kumar. Akshay Gupta stated that the launch signifies Prime Securities' expansion into AIF management, addressing evolving investor needs amidst the real estate sector's structural transformation. Apoorv Kumar highlighted the growing need for intelligent capital solutions for developers and the aim to build a best-in-class investment management platform. Rahul Rai noted the accelerating demand for institutional structured capital as conventional funding tightens, emphasizing Prime Litmus's goal to build a scalable, governance-led alternatives platform.