Sycamore has secured a fund manager license from the SEC, expanding into asset management with plans to offer diversified investment portfolios. This move aims to meet the demands of freelancers and SMEs in Nigeria while promoting accessibility. With the hiring of industry veteran Oluwagbenga Magbagbeola and an upgraded mobile app, Sycamore is poised to enhance its service offerings and compete within the digital investment landscape.
Sycamore, a Nigerian digital lender boasting ₦10 billion in assets, has obtained a fund manager license from the Securities and Exchange Commission (SEC) to expand its operations into asset management. This strategic move reflects the company’s intent to meet the increasing demand for diverse investment options among both retail and institutional investors in Nigeria.
The firm plans to offer a variety of investment portfolios encompassing stocks, bonds, and money-market instruments, available in both local and foreign currencies. Their CEO, Babatunde Akin-Moses, emphasized that this expansion was driven by the demands of their clientele, which includes freelancers and small and medium-sized enterprises (SMEs).
Akin-Moses stated, “Securing our SEC license is the culmination of years of building institutional-grade compliance systems. We’re not pivoting from lending; this is a strategic expansion that complements our core business.” Nigeria’s investment landscape features established players like ARM and Stanbic IBTC and newer fintech entrants like Bamboo. Sycamore aims to attract freelancers and SMEs by providing easier investment pathways, a segment largely underserved.
Sycamore has appointed Oluwagbenga Magbagbeola, an experienced professional with 17 years in capital markets, to head the new division, Sycamore Investment and Asset Management Limited (SIAML). Magbagbeola previously led ARM Securities and brings valuable expertise to the firm.
In addition, Sycamore plans to enhance its mobile application to include features like real-time investment analytics and an AI-driven portfolio management system. The app will support a multi-currency wallet, enabling users to invest in USD, EUR, GBP, and NGN, thereby competing with platforms like Bamboo and Rise.
According to co-founder and Chief Commercial Officer Onyinye Okonji, “We’re addressing a major gap in Nigeria’s investment market. Traditional asset management has remained out of reach for many Nigerians. Our goal is to change that.” Sycamore anticipates its asset management division will generate substantial revenues through management fees and performance incentives.
Though specific growth projections remain undisclosed, Sycamore plans to secure further capital in late 2025 or early 2026 to continue its momentum across Africa. The firm also intends to introduce alternative investment options, including Real Estate Investment Trusts (REITs).
Acknowledging their core competency in lending, Akin-Moses declared asset management as the future frontier for Sycamore, stating, “We’re democratizing access to wealth management solutions that can help more people invest in their desired lifestyle and future financial security.” The company endeavors to position itself as a comprehensive solution for Nigerians aiming to borrow, invest, and grow their wealth effectively.
In summary, Sycamore’s acquisition of a fund manager license from the SEC marks a strategic expansion into asset management, aiming to meet the investment needs of underserved segments in Nigeria. By offering diverse portfolios and enhanced technological solutions, the company is poised to compete effectively in the evolving investment landscape, focusing on both retail and institutional clients. As they explore alternative investments and prepare for further growth, Sycamore seeks to democratize access to wealth management for everyday Nigerians.
Original Source: techcabal.com
