Lofty Corban Investments has unveiled a private debt-focused special fund targeting institutional, corporate and retail investors, as asset managers move to capture rising demand for alternative income products and non-bank financing solutions.
- •The Lofty Corban Private Debt Special Fund will invest primarily in commercial paper and privately originated credit opportunities, offering capital to businesses and organisations such as Saccos, NGOs, trusts and foundations.
- •The firm said the product is structured as a collective investment scheme aimed at generating stable income through contractual interest payments.
- •Special funds have emerged as one of the fastest-growing segments of the collective investment scheme sector as fund managers explore alternative strategies beyond listed equities and government securities.
Chief Executive Officer Stanley Mutuku said the fund will pool investor capital to finance selected borrowers, with credit assessment, portfolio diversification and ongoing monitoring forming part of the investment process. The vehicle is positioned as an income-focused product targeting investors seeking predictable returns and exposure to private markets.
The launch comes against the backdrop of an estimated KSh2.4 trillion financing gap facing Kenyan enterprises, driven by cautious bank lending and tighter credit conditions following elevated non-performing loans in recent years. At the same time, declining yields on government securities have pushed investors to seek higher-return alternatives beyond traditional money market and bond investments.
Private debt has expanded rapidly globally over the past decade as institutional investors search for yield amid volatile public markets. The global private credit market is estimated at about US$ 3 trillion, with continued growth expected as pension funds, insurers and asset managers increase allocations to alternative assets.
