Key Takeaways
- • Prime Litmus Investment Management, a joint venture between Prime Research and Advisory (Prime Securities subsidiary) and Litmus Global Services LLP, launched Prime Litmus Real Estate Opportunities Fund with a base corpus target of ₹750 crore and a ₹250 crore green shoe option, totaling ₹1,000 crore in potential capital.
- • The Category II Alternative Investment Fund focuses on structured credit investments in self-liquidating under-construction real estate projects with visible cash flows and defined security structures across major Indian metropolitan regions including Mumbai, NCR, Bengaluru, Chennai, Hyderabad, and Pune.
- • The fund targets an internal rate of return of 18-20% per annum over a six-year tenure (extendable by one year), positioning itself to capitalize on tightening conventional funding for real estate developers seeking institutional structured capital.
- • Rahul Rai joined as managing partner, bringing the observation that "conventional funding avenues tighten for real estate developers" while "demand for institutional structured capital is accelerating"—a market dynamic driving the fund's launch.
- • The investment committee comprises professionals from real estate investing, investment banking, and asset management, signaling institutional credibility and sector expertise in fund operations.
Summary
Prime Securities Group has entered the alternative investment fund space through Prime Litmus Investment Management, a newly formed joint venture between Prime Research and Advisory (a Prime Securities subsidiary) and Litmus Global Services LLP. The entity launched Prime Litmus Real Estate Opportunities Fund on June 11, 2026, targeting structured credit investments in under-construction real estate projects across India's key metropolitan markets.
The fund is structured with a base target corpus of ₹750 crore and a green shoe option of ₹250 crore, enabling total deployment capacity of ₹1,000 crore. As a Category II AIF, the fund will focus on self-liquidating real estate projects that offer cash-flow visibility and defined security structures. Geographic focus spans six major markets: Mumbai Metropolitan Region, National Capital Region, Bengaluru, Chennai, Hyderabad, and Pune—regions representing institutional real estate investment density in India.
The fund carries a six-year tenure with a one-year extension option and targets an internal rate of return of 18-20% per annum, reflecting the risk-return profile typical of structured credit in the real estate sector. According to Rahul Rai, managing partner, the fund addresses a market gap created by tightening conventional funding channels for real estate developers, positioning institutional structured capital as an accelerating demand vector.
Apoorv Kumar, managing partner at Litmus Global Services LLP, framed the fund as a capital solutions platform serving real estate developers across asset classes and development cycles. The investment committee composition—drawn from real estate investing, investment banking, and asset management disciplines—underscores institutional governance standards typical of professional AIF operations.
The launch represents Prime Securities Group's strategic expansion into alternative investment management, particularly the structured real estate credit segment, during a period of real estate sector funding pressure and rising demand for non-traditional capital sources.
The fund is structured with a base target corpus of ₹750 crore and a green shoe option of ₹250 crore, enabling total deployment capacity of ₹1,000 crore. As a Category II AIF, the fund will focus on self-liquidating real estate projects that offer cash-flow visibility and defined security structures. Geographic focus spans six major markets: Mumbai Metropolitan Region, National Capital Region, Bengaluru, Chennai, Hyderabad, and Pune—regions representing institutional real estate investment density in India.
The fund carries a six-year tenure with a one-year extension option and targets an internal rate of return of 18-20% per annum, reflecting the risk-return profile typical of structured credit in the real estate sector. According to Rahul Rai, managing partner, the fund addresses a market gap created by tightening conventional funding channels for real estate developers, positioning institutional structured capital as an accelerating demand vector.
Apoorv Kumar, managing partner at Litmus Global Services LLP, framed the fund as a capital solutions platform serving real estate developers across asset classes and development cycles. The investment committee composition—drawn from real estate investing, investment banking, and asset management disciplines—underscores institutional governance standards typical of professional AIF operations.
The launch represents Prime Securities Group's strategic expansion into alternative investment management, particularly the structured real estate credit segment, during a period of real estate sector funding pressure and rising demand for non-traditional capital sources.
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