Prime Securities Launches ₹1,000 Crore Real Estate-Focused Category II AIF
Prime Securities has recently entered the alternative investment fund (AIF) management business through its group company, Prime Litmus Investment Management, with the launch of a real estate-focused Category II AIF aiming to garner a corpus of ₹1,000 crore.
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:
- Mumbai Metropolitan Region (MMR)
- National Capital Region (NCR)
- Bengaluru
- Chennai
- Hyderabad
- Pune
Investment Strategy and Goals
The fund will focus on self-liquidating projects with visible cash flows and security-backed investment structures, primarily partnering with established developers and targeting residential projects in markets with demonstrated demand.
The fund has a tenure of six years, with an option to extend by one year and aims to generate annual internal rates of return (IRRs) of 18-20%, subject to market conditions and investment performance.
Leadership Team and Governance
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, with ecosystem partners including:
- ICICI Bank as custodian and fund accountant
- Price Waterhouse Chartered Accountants LLP as auditor
- MITCON Credentia Trusteeship Services Ltd. as trustee
Regulatory Framework
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.
Note to Readers
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.