Many Kenyans are adopting hedge funds as an investment opportunity in Kenya. Investing in a hedge fund involves a hedge fund manager and investment partners. The hedge fund manager gives the investment partners investment strategies and then, they pool money together. To start managing hedge funds, you must be licensed by the Capital Markets Authority.
Also, hedge funds are structured as Limited Liability Company or Limited Partnership. In this article, we are going to inform you what a hedge fund is and provide you with a list of hedge funds in Kenya.
What is Hedge Fund?
Hedge funds are investment pools that are managed by investors using various strategies. Hedge fund managers borrow investment money from investors. The managers then pitch investment strategies to the investors before investing the money. Hedge fund managers must stick to the investment strategies they pitched to investment partners.
Hedge Fund Companies in Kenya
The following are hedge fund companies in Kenya that are regulated by the Capital Markets Authority.
1. Amana Capital
Amana Capital is regulated by the Capital Markets Authority and Retirement Benefits Authority. The company manages unit trusts and pension products and provides wealth management services to companies and institutions.
2. Sterling Company
Sterling company is an investment bank in Kenya that provides wealth management to companies and individuals. It mainly targets the SMEs sector that requires local funding. The company also invests in the Nairobi Securities Exchange (NSE). This way, the company is able to monitor the movement of assets like stocks.
3. Fanisi Capital
Fanisi is a Norwegian investment fund that targets particular industries in developing countries. Some of the industries it targets include Agriculture, Healthcare and Energy. The firm provides financial services to companies whose funding starts from Ksh 103 million.
4. Savannah Fund
Savannah Fund is a hedge fund that mainly targets high-growth technology like web and mobile startups in Sub-Saharan countries. It specializes in US $50,000 to $1,000,000 investments in early stage.
5. Richmind Investment
Richmind Investment is a hedge fund in Kenya and has some of the most talented money managers in Kenya It is also a leading investor in the world’s financial markets. The company has been operating for over 5 years now. The company deals with some investments like pension funds, endowments, and private individuals.
Read also: Best insurance companies in Kenya.
6. Novastar Ventures
Novastar Ventures is a hedge fund that is assisting entrepreneurs to design and execute innovative business ideas.
Summary of List of Hedge Funds in Kenya
The above is a list of hedge fund companies in Kenya. However, it is worth noting that between 4 and 10% of hedge funds in Kenya fail every year. It is because hedge fund investment is still in the infancy stage and many people have not become aware of it. Therefore, be careful when starting a hedge fund in Kenya.