Sterling Capital set to begin Sh2bn hedge fund

The investment bank, Sterling Capital, will launch a Sh2bn hedge fund that will raise money from institutions and high-net worth individuals in order to invest in a number of different assets and strategies, according to Business Daily.

The fund has greater flexibility in comparison to other asset managers that are focused on medium to long-term investments in mainstream stocks and bonds, according to David Ngaine, Sterling chief executive.

In a statement, Mr Ngaine said: “We are in the final stages of putting this together and are excited because there are a lot of interesting investment opportunities out there. “We have a couple of ideas. One sector is the small and medium-sized enterprises (SME) sector that is in dire need of funding solutions locally. We believe there may be ways to provide capital to SME’s that still protects our investors in the hedge fund.”

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It is anticipated that each investor will inject around Sh20mn in the fund, which limits the offer to wealthy clients deemed more cognisant of risks in capital markets.

With the funds set to be raised privately from select prospective investors, the process doesn’t require approval from the Capital Markets Authority (CMA).

In a statement, Kuramo’s chief executive, Shaka Kariuki, commented: “This is a game-changer. Both local and foreign investors need more investment options in this part of the world and we can provide that through Sterling Capital.”