Prime Securities, a listed Sebi-registered merchant banker, on Thursday said its group company, Prime Litmus Investment Management Ltd, has entered the alternative investment fund (AIF) business with the launch of the Prime Litmus Real Estate Opportunities Fund, targeting a corpus of ₹1,000 crore, including a greenshoe option.

The Category II AIF has a target corpus of ₹750 crore and a greenshoe option of ₹250 crore and will focus on structured credit investments in under-construction real estate projects across major markets such as Mumbai Metropolitan Region, National Capital Region, Bengaluru, Chennai, Hyderabad and Pune, Prime Securities said in a statement.

The fund will primarily invest in self-liquidating real estate projects backed by established developers, with an emphasis on strong cash-flow visibility and robust security structures.  It aims to generate target annual returns of 18-20% through conservative underwriting and asset management practices.

Prime Litmus Investment Management Ltd is a joint venture between Prime Research and Advisory Ltd, a subsidiary of Prime Securities Ltd, and Litmus Global Services LLP.

“The launch of Prime Litmus Real Estate Opportunities Fund represents an important milestone in Prime Securities’ expansion into the Alternative Investment Fund management. India’s real estate sector is undergoing structural transformation led by consolidation, formalisation 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,” Prime Securities Director Akshay Gupta said.

Litmus Global Services LLP Managing Partner Apoorv Kumar said the platform aims to provide solution-oriented capital while maintaining strong governance and transparency standards.