Prime Securities Ltd, a listed SEBI-registered merchant banker, on Thursday said it has entered the alternative investment fund (AIF) management space through its group company, Prime Litmus Investment Management Ltd.
The entity has been set up as a joint venture between Prime Research and Advisory Ltd, a subsidiary of Prime Securities, and Litmus Global Services LLP, a real estate-focused investment advisory firm, the company said in a statement.
The joint venture has launched the Prime Litmus Real Estate Opportunities Fund, a Category II AIF, with a target corpus of nearly $78 million (Rs 750 crore) and a green shoe option of Rs 250 crore, the statement added.
The fund will focus on structured credit investments in under-construction real estate projects across key metropolitan regions, including Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru, Chennai, Hyderabad and Pune.
It will have a tenure of six years, extendable by one year, and is targeting annual internal rates of return (IRR) of 18–20%.
The fund will primarily invest in self-liquidating real estate projects with cash-flow visibility and defined security structures. It plans to partner with established developers and focus on markets with steady demand.
The strategy aligns with demand in mid-tier and premium housing segments, as well as increasing institutional participation in the real estate sector, the statement added.
“India’s real estate sector is undergoing structural transformation led by consolidation, formalization and increasing institutional participation. The launch of our AIF business is Prime’s commitment to create and diversify investment platforms/solutions to address evolving investor needs,” said Akshay Gupta, Director of Prime Securities Ltd.
