Sycamore Expands with SEC Licence for Asset Management in Nigeria

Sycamore, a Nigerian digital lender, has obtained a fund manager licence from the SEC, indicating its strategic expansion into asset management. The company aims to provide diversified investment portfolios while addressing the needs of freelancers and SMEs. Sycamore plans to introduce a mobile app for real-time investment analytics and intends to launch alternative investments, positioning itself to compete in the evolving Nigerian investment market.

Sycamore, a Nigerian digital lender possessing ₦10 billion in assets under management, has recently obtained a fund manager licence from the Securities and Exchange Commission (SEC). This pivotal development marks a significant step beyond Sycamore’s core lending operations as it seeks to capitalize on the rising demand for investment options from both retail and institutional investors in Nigeria.

The company plans to provide diversified portfolios encompassing stocks, bonds, and money market instruments in both local and foreign currencies. Motivated by customer demand, Sycamore’s CEO Babatunde Akin-Moses has indicated that many of the 300,000 users, including freelancers and small to medium-sized enterprises (SMEs), have expressed interest in accessible investment options.

“Securing our SEC license is the culmination of years of building institutional-grade compliance systems,” stated Akin-Moses, elaborating that the launch is a strategic expansion rather than a departure from lending. The Nigerian investment landscape features various key players, from traditional firms like ARM and Stanbic IBTC to emerging fintech competitors such as Bamboo and Rise. Sycamore identifies an opportunity to serve freelancers and SMEs, who often find investment pathways limited.

Oluwagbenga Magbagbeola, the former Managing Director of ARM Securities, has been appointed to head Sycamore Investment and Asset Management Limited (SIAML), bringing with him 17 years of experience in capital markets. The firm intends to upgrade its mobile app to include real-time investment analytics and AI-driven portfolio management, alongside introducing a multi-currency wallet for investments in various currencies, including USD, EUR, GBP, and NGN.

“We’re addressing a major gap in Nigeria’s investment market,” expressed Onyinye Okonji, co-founder and CCO of Sycamore. The firm aims to ensure that traditional asset management services become accessible to a broader demographic of Nigerians, thus altering the current landscape.

Sycamore anticipates that asset management will emerge as a key revenue source, generating income through management fees and performance incentives, although specific growth targets have not been revealed. The company intends to seek additional capital in late 2025 or early 2026 to fuel its expansion goals across Africa.

In its future offerings, Sycamore plans to introduce alternative investments, starting with Real Estate Investment Trusts (REITs) and USD-denominated products imminent. This strategic initiative is designed to enable Sycamore to vie within a competitive market full of digital investment solutions catering to both retail and institutional clients.

While Sycamore is widely recognized for its lending services, Akin-Moses views asset management as the next frontier. “We’re democratizing access to wealth management solutions that can help more people invest in their desired lifestyle and future financial security,” he noted. Sycamore aspires to be a comprehensive resource for Nigerians seeking to borrow, invest, and cultivate their wealth through a structured and supportive platform.

In conclusion, Sycamore’s recent acquisition of an SEC fund manager licence signals an important evolution in its service offerings as it embarks on the journey to become a more comprehensive financial platform. By addressing unmet needs among freelancers and SMEs, the company aims to democratize access to investment opportunities in Nigeria’s growing market. Through strategic initiatives such as upgraded technology and alternative investment products, Sycamore is poised to significantly influence the investment landscape, enhancing wealth management accessibility for a broader audience.

Original Source: techcabal.com