The Kudy Story: How We Became a Leading Global Alternative Investment Manager
Reflecting on our journey, it’s been a year since we obtained our operational license in Nigeria. A transaction from one of our earliest clients sparked a trip down memory lane, back to our humble beginnings as a private investment club for family and friends.
Since our inception in 2017, we have rapidly evolved into a leading global alternative investment manager, with our headquarters situated in Luxembourg.
Our operations officially commenced on March 2, 2017, following the approval of our first operational license from the Cayman Islands Financial Authority. Our commitment to growth and service enhancement has led us to secure additional licenses from the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg in 2019 and the Securities and Exchange Commission (SEC) in Nigeria in 2023. These licenses allow us to operate as fund and portfolio managers in those jurisdictions, with several licenses currently in the pipeline.
Our philosophy and mission have remained steadfast throughout our seven years of operation. We have consistently delivered sustainable and long-term financial returns to our expanding client base. Our philosophy, centered around risk control through diversification and specialization, is evident in the funds we manage across various jurisdictions.
Over the years, we have launched funds for our diverse client base in our licensed jurisdictions. The flagship product was the Kudy Eurobond Fund (KEF). Kudy Eurobond Fund is an investment vehicle targeted at young Africans on the continent and in the diaspora seeking to invest in dollar-denominated funds. Kudy Eurobond Fund provides our clients a risk-managed basket of diversified internationally rated bonds. The returns on the Kudy Eurobond Fund are non-distributive. This means that the interests accrue over time and are added to the initial investment, resulting in compounded returns for investors. As a result, the Kudy Eurobond Fund does not have a lock-in period; investors can exit the fund whenever they want.
Following the launch of the KEF, we introduced the Kudy Hedge Fund (KHF) for our less risk-averse clients. The Kudy Hedge Fund is a basket of stock options and index options.
In response to the demand from our clients for alternatives to traditional asset classes, we launched the Kudy Trust Fund (KTF) in 2020. The Kudy Trust Fund provides a mix of traditional and alternative assets that range from fixed-income instruments (Kudy Eurobond Fund — KEF); stocks, stock options, and index options (Kudy Hedge Fund, KHF); and cryptocurrencies, which combine plain vanilla long positions with decentralized finance. The Fund uses these financial derivative instruments and alternative assets for hedging and efficient portfolio management.
Our funds are targeted at high-net-worth individuals or institutional investors with a minimum net worth of $125,000. However, a special purpose vehicle (SPV) enables retail investors to buy into the Kudy Eurobond Fund and Kudy Trust Fund at $1000 and $5000, respectively.
With the rapid growth of our funds in other markets, we started exploring developing markets, leading to the launch of our Nigerian subsidiary to bring our long-term philosophy to the Nigerian market. To this end, we secured a fund management license from the Nigerian Securities Exchange Commission (SEC) in 2023 and launched the Kudy Alpha Fund (KAF) . The Kudy Alpha Fund invests in short-term bills issued by the Nigerian federal government and commercial papers issued by Nigerian corporates. With a minimum investment of ₦250,000.00 (two hundred and fifty thousand Naira), KAF is tailored for Nigerian retail and corporate investors who want sustainable investment returns.
Our commitment to regulatory compliance and legal best practices strengthens credibility and trustworthiness in the financial industry. To us, the “return of investment” is much more important than the “return on investment”. Therefore, we adhere strictly to the regulatory practices of the jurisdictions where our funds are domiciled and maintain a strong corporate governance structure. Each of our funds has its respective custodians and administrators.
The journey so far has been exhilarating. From managing accounts over spreadsheets and emails to now having a web application enabling our clients to manage their investments seamlessly as a bootstrapped firm with minimal marketing spend. We currently do not have any mobile app, as all our services can be assessed via our website. If the demand for a mobile app grows, we will develop one and make it accessible to our clients.
It’s been seven fulfilling years of providing our clients with a financial sanctuary. Empowering our clients to achieve their goals, from educational aspirations to financial freedom, is the most rewarding aspect.
Our clients call themselves the Kudyminati. If you wish to be part of the Kudy family, you can sign up on our website, kudy.io, or send an email to experience@kudy.io for dollar-denominated funds. Residents of Nigeria can use kudy.ng or send an email to experience@kudy.ng.
