Sycamore, a Nigerian digital lender, has secured a fund manager license from the SEC, marking its entry into asset management. This expansion aims to meet the growing demand from retail and institutional investors for accessible investment options. Led by seasoned industry professionals, Sycamore intends to provide diversified portfolios and leverage technology with a new mobile app while targeting both traditional and alternative investments.
Sycamore, a Nigerian digital lending firm with ₦10 billion in assets, has recently acquired a fund manager license from the Securities and Exchange Commission (SEC). This development marks Sycamore’s entry into asset management, signaling a strategic shift from its primary lending operations to cater to the rising demand for investment opportunities among Nigeria’s expanding investor base, which includes retail and institutional investors.
The company plans to provide diversified investment portfolios that encompass stocks, bonds, and money-market instruments available in both local and foreign currencies. This expansion is largely driven by customer preference, particularly among its 300,000 users, which include freelancers and small and medium-sized enterprises (SMEs) requiring accessible investment options.
CEO Babatunde Akin-Moses emphasized that obtaining the SEC license reflects the rigor invested in developing compliance systems. He stated, “We’re not pivoting from lending; this is a strategic expansion that complements our core business.” Sycamore aims to fill a gap in Nigeria’s investment market, traditionally dominated by established corporations like ARM and Stanbic IBTC, as well as newer fintech players such as Bamboo.
To steer this new venture, Sycamore has appointed Oluwagbenga Magbagbeola, the former Managing Director of ARM Securities, to head the newly formed division, Sycamore Investment and Asset Management Limited (SIAML). With a wealth of experience in capital markets, Magbagbeola’s leadership is expected to enhance Sycamore’s capabilities in asset management.
Additionally, the firm intends to launch an upgraded mobile application that will provide real-time investment analytics and AI-driven portfolio management. This app will introduce a multi-currency wallet feature, enabling users to manage investments in major currencies including USD, EUR, GBP, and NGN. This move aligns with other Nigerian tech investment firms that are increasingly making wealth management services more accessible to younger demographics.
Co-founder and CCO Onyinye Okonji stated, “We’re addressing a major gap in Nigeria’s investment market.” Sycamore aims to democratize wealth management, opening doors to options that have typically been beyond the reach of many Nigerians. As it ventures into asset management, Sycamore sees it as a pivotal revenue source, although the company has not yet specified growth forecasts.
Plans for alternative investments such as Real Estate Investment Trusts (REITs) and USD-denominated products are also in the pipeline. This strategy positions Sycamore competitively within the crowded digital investment landscape, targeting both retail and institutional clients seeking diversified investment portfolios. Akin-Moses believes that asset management embodies the next pivotal stage for Sycamore’s evolution.
Ultimately, Sycamore is aiming to provide a holistic financial platform for Nigerians, encompassing borrowing, investing, and wealth growth, with the intent to cater to diverse investment needs through comprehensive products and services.
In conclusion, Sycamore’s recent acquisition of an SEC fund manager license marks a significant strategic expansion beyond lending into asset management, driven by a desire to meet the investment needs of a broad demographic in Nigeria. The company plans to introduce various investment products, including alternative investments, while also enhancing customer access through technology. With experienced leadership and a focus on democratizing wealth management, Sycamore is poised to establish itself as a significant player in Nigeria’s evolving investment landscape.
Original Source: techcabal.com
