Cytonn Investments

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Cytonn Investments
TypePrivate Limited Company
IndustryInvestments & Real Estate
Founded2014
HeadquartersNairobi, Kenya,
Nairobi
Key people
  • Daniel Mugendi Njiru (Chairman)
  • Edwin Dande (CEO)
  • Shiv Arora ()
  • Patricia Wanjama ()
  • Elizabeth Nkukuu (CIO)
[1][2]
ProductsReal Estate, Structured Solutions, Private Equity & Advisory.
BrandsCytonn Real Estate, Cytonn Technologies, Cytonn Diaspora
Websitewww.cytonn.com

Cytonn Investments is an investment and real estate company. They are primarily focused on offering alternative investment solutions to global institutional investors, individual high net-worth investors, local institutional investors and diaspora investors interested in the East-African region. Cytonn's alternative investments solutions are based on four main products: real estate, structured solutions, private equity, and advisory. Most of the investment opportunities in Sub-Saharan Africa are not in the listed markets, hence their focus on alternative investments to find uncommon value and returns for their clients. It has offices in Nairobi, Kenya and Metropolitan Washington, DC, United States of America.[3]



Overview[]

he firm was formed by a team that had worked together as the executive team at a leading asset manager in the region. After a very successful tenure growing profitability by over 10 times, increasing assets by over 3 times and moving the previous firm from number 6 to number 1 (in the East-African region) by revenues, the team moved to create an independent firm focused solely on serving the interests of clients and investors.


History[]

In 2014, four senior managers at publicly listed British-American Investments Company (Britam), left the company to form their own private equity firm which they named Cytonn. The four Cytonn directors, Britam said had transferred illegally Sh7 billion from a client account to their own firm before resigning from Britam.


[4] The four are:[5][6]

  1. Edwin Dande - Chief Executive Officer at Cytonn
  2. Shiv Arora - at Cytonn
  3. Patricia Wanjama - at Cytonn
  4. Elizabeth Nkukuu - Chief Investment Officer at Cytonn

Investment structure[]

Cytonn’s investments are organised into four main classes:[7]

Private Equity Cytonn focuses in the areas of (a) Banking (b) Insurance (c) Hospitality (d) Education.

Real Estate Focusing in the areas of (i) real estate investments (ii) real estate backed fixed income notes and (iii) rent stabilized investments units. With ten Ongoing projects.

High Yield Includes:

  • Cytonn High Yield Solutions (CHYS: For short term investors
  • Cytonn Project Notes: For medium to long-term investments

Asset Managers Cytonn Asset Managers offers a range of differentiated Unit Trust Products to both institutional and retail investors as well as foreign investors.

Ownership[]

The company stock is owned by the four founders of the firm.[5] In 2015, the founders sold 10 percent of the company stock to "high net-worth investors".[3] The shareholding in the business is as depicted in the table below.

Cytonn Stock Ownership
Rank Name of Owner Position Percentage Ownership
1 Edwin Dande, Shiv Arora, Patricia Wanjama & Elizabeth Nkuku
CEO, Former CFO, Legal Officer & CIO respectively
4 Elizabeth Nkukuu
CIO
5 Others
Equity partners
10.0
Total
100.00

In February 2019, Cytonn's Chief Executive Officer, Edwin Dande, indicated that the firm was considering listing its shares on the Nairobi Stock Exchange and subsequently cross-listing on the London Stock Exchange.[8]

Administration[]

In October 2021, CHYS and CPN funds offered by Cytonn Group were placed under court appointed administration as part of ongoing efforts to turn around their performance. The application for administration was filed by the Chief Executive Officer of Cytonn Group, Edwin H. Dande pursuant to a resolution by the Board of CHYS investors. In a court order issued on Wednesday, October 6, Justice Alfred Mabeya appointed Kereto Marima, a licensed Insolvency practitioner, as an administrator of the property of Cytonn High Yields Solutions LLP and Cytonn Real Estate Project Notes LLP in accordance with the provisions of the insolvency act.

“That this court do hereby appoints Kereto Marima of Box 1796-00606 Nairobi, a licensed insolvency practitioner as administrator of the property of Cytonn High Yields Solutions LLP in accordance with the provisions of the insolvency act,” the court order read in parts, with another part addressing Cytonn Real Estate Project Notes LLP.

The court directed that the order be served to all creditors owed by the embattled company.[9]

See also[]

  • British-American Investments Company
  • Centum Investments
  • Capital Markets Authority (Kenya)
  • Economy of Kenya

References[]

  1. ^ Mureithi, Francis (26 August 2016). "Kenya: Cytonn Investments Posts Sh631 Million Profit in 2015". Daily Nation via AllAfrica.com. Nairobi. Retrieved 22 September 2016.
  2. ^ Kariuki, James (11 January 2016). "Real estate is where wealth will grow in 2016, says firm in report". Daily Nation. Nairobi. Retrieved 22 September 2016.
  3. ^ a b Elayne Wangalwa (22 April 2015). "Cytonn Investments CEO outlines company's future". CNBC Africa. Archived from the original on 23 September 2016. Retrieved 22 September 2016.
  4. ^ Wasuna, Brian (24 December 2014). "Britam, Cytonn serve up 2014's fiercest corporate battle". Business Daily Africa. Nairobi. Retrieved 22 September 2016.
  5. ^ a b Daily Nation (14 October 2014). "Britam faces classic case of new money posing threat to old". Daily Nation Mobile. Nairobi. Retrieved 22 September 2016.
  6. ^ Cytonn (22 September 2016). "Cytonn Investments Management Limited: The Team". Nairobi: Cytonn Investments Management Limited (Cytonn). Archived from the original on 23 September 2016. Retrieved 22 September 2016.
  7. ^ Cytonn (22 September 2016). "Cytonn Investments Management Limited: Investment Solutions". Nairobi: Cytonn Investments Management Limited (Cytonn). Archived from the original on 23 September 2016. Retrieved 22 September 2016.
  8. ^ Kariuki, James (19 February 2019). "Cytonn eyes bourse, London stock listing". Business Daily Africa. Nairobi. Retrieved 19 February 2019.
  9. ^ https://www.k24tv.co.ke/news/high-court-puts-cytonn-investment-funds-under-administration-47318/

External links[]

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