This archive report was first published on 10 December 2019.
December 10, 2019 - Cytonn, a leading alternative investment firm, has set its sights on raising Ksh.30 billion from high net worth investors through its newly launched regulated high yield fund.
The fund, which has received approval from the Capital Markets Authority (CMA), is expected to place up to 80 percent of the acquired funds in real estate to finance ongoing and prospective projects.
According to Cytonn Chief Executive Officer Edwin Dande, the fund offers a higher return to investors compared to commercial banks, with a maximum yield of 15 percent.
“Unlike banks who largely put their funds in fixed income, we are the ones with shovels on the ground working for a return to our investors,” Dande told Citizen Digital.
The Ksh.30 billion target is expected to be achieved over a period of five to seven years, with proceeds going towards the construction of 6,000 housing units under the State’s affordable housing plan.
With a minimum initial investment of Ksh.1,000,000 and a shortened initial lock-in period of three months, the fund is expected to attract significant interest from high net worth investors.
