Prime Securities real estate AIF targets ₹1,000 crore

What Prime Securities has announced

Prime Securities Ltd has expanded into alternative asset management by entering the alternative investment fund (AIF) business through its group company, Prime Litmus Investment Management Ltd (PLIM). The Sebi-registered merchant banker said the move marks a new line of business after three decades in investment banking and financial services. The new platform is being positioned around private credit opportunities in real estate, where developers are facing tighter funding conditions.

The company’s announcement centers on the launch of a real estate-focused Category II AIF that will invest using structured credit. The focus, as described, is on under-construction real estate projects, primarily residential developments. The fund is targeting a base corpus of ₹750 crore and includes a greenshoe option of ₹250 crore, taking the potential total to ₹1,000 crore.

The fund: Prime Litmus Real Estate Opportunities Fund

PLIM has launched the Prime Litmus Real Estate Opportunities Fund as its first scheme under the newly approved real estate AIF framework. It is described as a Category II AIF focused on structured credit investments in under-construction projects. The stated focus is primarily residential developments, aligning with the theme that constrained developer funding can increase demand for private credit.

In another description included in the provided text, the fund’s investment scope is also framed more broadly across the real estate sector in India. It notes a focus on Residential, Industrial, Commercial, and special situation projects. Taken together, the positioning suggests a structured credit approach, with residential under-construction projects as the primary lens while retaining flexibility to evaluate other real estate segments and special situations.

Corpus target and greenshoe option

The fund is targeting ₹750 crore as the main corpus, with a ₹250 crore greenshoe option. This sets the upper fundraising ambition at ₹1,000 crore. The corpus target is notable in the context of multiple real estate and credit-oriented pools in India aiming for large fund sizes, as indicated by other fund launches referenced in the same material.

A greenshoe option typically allows the fund to raise additional capital beyond the base target if investor demand supports it. In this case, the structure provides room to scale the strategy without changing the core fund framework.

How PLIM is set up

PLIM was incorporated in March 2025 to carry out investment management for AIFs. It is structured as a joint venture between Prime Research & Advisory Ltd (PRAL) and Litmus Global Services LLP (LGS), and is based out of Mumbai, India.

PRAL is described as a 100% subsidiary of Prime Securities Ltd, which is listed and is a SEBI Registered Category 1 Merchant Banker. PRAL’s stated operating area includes corporate advisory services, especially fundraising and strategic initiatives. The AIF business, housed under PLIM, extends the group’s footprint from advisory and investment banking into fund management.

Why structured credit is the chosen approach

The stated thesis behind the expansion is that tighter funding conditions for developers can support demand for private credit solutions in real estate. Within that framing, structured credit for under-construction residential projects is positioned as the core opportunity set for the new scheme.

While the provided material does not specify product-level parameters such as tenure, return targets, or investor minimums for Prime Litmus’ fund, it clearly identifies the strategy type (structured credit) and the project stage (under-construction) as the defining characteristics.

Real estate AIF activity in the wider market

The same set of inputs also references other AIF activity in India, underscoring the broader fundraising environment. Alt Capital has launched AltCap Yield Fund III (AYF III) with a target corpus of ₹1,000 crore and a ₹200 crore green shoe option, and the fund is stated to focus on income-generating, pre-leased Grade A and A+ office and warehousing assets.

Separately, the material mentions the Prime Offices Fund (Nuvama and Cushman & Wakefield) and describes a transaction where Prime Offices Fund acquired a 51% stake in an office asset in Pune comprising 11 lakh sq ft in a deal value of nearly ₹1,000 crore, with market sources pegging the value of the 51% stake at close to ₹1,000 crore. This provides additional context on the scale of activity in real estate investment vehicles, even though it is unrelated to Prime Securities’ AIF initiative.

Key facts at a glance

Market impact and what investors will watch

The announcement signals Prime Securities’ move into fee-generating alternative asset management through a regulated AIF structure. The fund’s structured credit focus links directly to developer funding conditions, a theme explicitly highlighted by the company as a driver for private credit demand.

For investors tracking the space, the immediate points to watch are fundraising progress against the ₹750 crore base target and whether the greenshoe of ₹250 crore is exercised. Market participants may also monitor how the fund translates its stated focus into portfolio construction, given the two descriptions provided: a primarily residential, under-construction credit focus, and a broader sector lens that includes industrial, commercial, and special situations.

Conclusion

Prime Securities has entered the AIF business through PLIM and launched its first scheme, the Prime Litmus Real Estate Opportunities Fund, targeting up to ₹1,000 crore including a greenshoe option. The fund is positioned around structured credit for under-construction real estate projects, with residential developments described as the primary focus. The next milestones, based on the details provided, will be the pace of fundraising and the deployment strategy as the fund begins building its portfolio.