BENGALURU, June 11 -- Prime Securities Ltd is expanding into alternative asset management, betting that tighter funding conditions for developers will fuel demand for private credit in real estate.

The Securities and Exchange Board of India (Sebi)-registered merchant banker on Wednesday said it has entered the alternative investment fund (AIF) business through group company Prime Litmus Investment Management Ltd, marking a new line of business after three decades in investment banking and financial services.

Prime Litmus Investment Management has launched the Prime Litmus Real Estate Opportunities Fund, a Category II AIF focused on structured credit investments in under-construction real estate projects, primarily residential developmen...