CYTONN claims that it has $800 million in assets under its management

[Globalcitizen12]

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https://www.cytonn.com/

https://www.forbes.com/sites/mfonobongnsehe/2017/07/04/meet-the-kenyan-entrepreneur-who-built-a-800-million-asset-management-firm/4/#1cac094537f1

can someone explain to me about this company? How does it make money and what is this they are managing. The other company that is a mystery to me is BRITAM. How does to operate?

[MOON Ki]

I don't know what its operations are, but that CEO sure is a funny guy.   Sample one of his comments in that interview:

The culture for alternative investments, given that they are more complex, requires an intense high performing work culture. As you know, third world countries like ourselves are not necessarily known for high performing work culture. So talent is rare to come by.

 

[Globalcitizen12]

That is funny.. I am told in South Africa region boers say that Africans are born tired.. Ask an African graduate to work 12 hour shifts in an investment bank and weekends. It is not gonna happen

[hk]

I am skeptical of this company. Its a real estate company, its a sacco, its a PE.  On private equity, they don't disclose what companies they have invested in. Compare that if makatiani Fanisi capital http://www.fanisi.com/ .

[RV Pundit]

I bet I saw the meru girl who is CFO/partner @UON during my time there. They are pretty young folks. I think it's nothing more than real estate company. I doubt they have invested in say Equities - public or private.

I am skeptical of this company. Its a real estate company, its a sacco, its a PE.  On private equity, they don't disclose what companies they have invested in. Compare that if makatiani Fanisi capital http://www.fanisi.com/ .

[vooke]

Their 2016 financials
https://www.cytonn.com/download/CIML_&_Subsidiaries_FY2016_Audited_Financials.pdf

I have heard they pay up to 18% on their Cash Management Services which means they must be earning more than 20%. But with the interest capping I don't think any bank would take deposits at more than 11%. So how do they pay? What investments do they do that earn this high return?

Their statements show a popular trend of scammers kina Centum HomeAfrika of selling air but posting profits due to asset revaluation.

I think it's a ponzi in the making

[Nefertiti]

They are either a sacco or PE who are basically speculators - on land or stocks. Britam raises cash via insurance and investments in real estate or using its fund manager arm.

The issue with a sacco is you raise money quickly through contributions without creating any real products... but members get to borrow which strains cashflow.

A PE has to court investors through a very impressive track record. Like Zimele... tough to start but can go exponential with time. Most saccos don't have the skill to play the stock market and do only real estate. The "asset" is member contributions or pensions.

[hk]

Cytonn seems to be a primarily a real estate company that sells apartments and houses off-plans. The sacco seems to be a saving vehicle to purchase cytonn houses or apartments. Its not reit or mutual fund like zimele its more of Gakuyo http://gakuyorealestate.co.ke/ . Have they completed any of the projects? I know the one in ruaka is just getting started.