Prime Securities has entered the alternative investment fund (AIF) management segment through its group company, Prime Litmus Investment Management Ltd., marking a significant expansion beyond its three decades of experience in investment banking and financial services.
The Securities and Exchange Board of India (SEBI)-registered merchant banker announced the launch of the Prime Litmus Real Estate Opportunities Fund, a Category II AIF focused on structured credit investments in under-construction real estate projects, primarily within the residential housing segment.
The newly launched fund is targeting a corpus of ₹750 crore and includes a greenshoe option of ₹250 crore, taking the total potential fund size to ₹1,000 crore.
Prime Securities’ entry into the AIF management business comes at a time when India’s real estate sector is experiencing increased consolidation, formalization, and institutional participation. According to the company, the evolving market dynamics have created attractive opportunities for structured credit investment strategies, particularly in the residential real estate segment.
The launch also represents a strategic diversification for Prime Securities as it expands its portfolio beyond traditional investment banking services and strengthens its presence in asset management and alternative investment products.
The leadership team behind the platform brings extensive experience across real estate investing, investment banking, and asset management. Prime Litmus Investment Management will operate under the leadership of Rahul Rai, Managing Partner at Prime Litmus, alongside Akshay Gupta, Director at Prime Securities, and Apoorv Kumar, Managing Partner at Litmus Global Services.
The company stated that the platform will maintain institutional-grade governance standards and robust risk management frameworks to ensure transparency, compliance, and investor confidence.
To support fund operations, Prime Litmus has partnered with several established institutions. ICICI Bank will serve as the custodian and fund accountant, while Price Waterhouse Chartered Accountants LLP will act as the auditor. MITCON Credentia Trusteeship Services Ltd. has been appointed as the trustee for the fund.
Industry experts believe that growing demand for residential housing, improving regulatory transparency, and increased participation from institutional investors continue to create favorable conditions for structured credit funds focused on real estate. As developers seek alternative financing sources and investors look for diversified investment opportunities, Category II AIFs have emerged as an increasingly attractive asset class.
With the launch of the Prime Litmus Real Estate Opportunities Fund, Prime Securities aims to capitalize on these trends while providing investors access to structured real estate credit opportunities backed by disciplined investment practices and institutional oversight.
Prime Securities’ entry into the alternative investment fund management business marks an important milestone in the company’s growth strategy. Through the launch of the Prime Litmus Real Estate Opportunities Fund, the firm is expanding into asset management while tapping into the growing demand for structured credit investments in India’s real estate sector.
