Sycamore Expands into Asset Management with SEC License

Sycamore has acquired an SEC license, allowing it to expand into asset management beyond its core digital lending services. With ₦10 billion in assets, the company targets retail and institutional investors by offering diverse investment options. Sycamore’s new division will be led by industry expert Oluwagbenga Magbagbeola, and the firm aims to enhance accessibility to investment solutions for everyday Nigerians.

Sycamore, a notable Nigerian digital lender, has received a fund manager license from the Securities and Exchange Commission (SEC). This milestone allows the company to expand its operations beyond lending, responding to a growing demand for investment options from both retail and institutional investors in Nigeria. With ₦10 billion in assets under management, Sycamore intends to provide diversified portfolios that include stocks, bonds, and money-market instruments in various currencies.

The expansion is driven by customer needs, particularly among Sycamore’s 300,000 users, including freelancers and SMEs. CEO Babatunde Akin-Moses stated that their SEC license reflects the development of robust compliance systems. He clarified that this move is a strategic addition rather than a deviation from their core lending business.

In the context of Nigeria’s investment landscape, dominated by firms such as ARM, Stanbic IBTC, and FBNQuest, Sycamore aims to cater to an underserved segment. Their focus is on everyday Nigerians who seek accessible investment pathways, distinguishing them from competitors that primarily serve high-net-worth individuals and technologically savvy retail investors.

To lead its new division, Sycamore Investment and Asset Management Limited (SIAML), the company has appointed Oluwagbenga Magbagbeola, formerly of ARM Securities. Magbagbeola brings 17 years of capital markets experience, adding significant expertise to Sycamore’s new operations.

The company is also enhancing its mobile application, which will incorporate real-time investment analytics and AI-powered portfolio management features. A multi-currency wallet will facilitate investments in various currencies, including USD and GBP, positioning Sycamore alongside emerging tech investment firms like Bamboo and Rise.

Onyinye Okonji, co-founder and CCO of Sycamore, emphasized the goal of making wealth management more accessible, stating, “Traditional asset management has remained out of reach for many Nigerians. Our goal is to change that.” Sycamore anticipates asset management to become a substantial revenue source through management fees and performance incentives.

Projections for growth have not been detailed, with plans to seek additional capital in late 2025 or early 2026 to expedite expansion across Africa. In line with its strategic evolution, Sycamore aims to introduce alternative investments, including Real Estate Investment Trusts (REITs), indicating intentions to enhance competitiveness in a market rich with digital investment options.

While Sycamore is recognized primarily for its lending services, Akin-Moses believes that asset management is an essential frontier for the firm. He asserted, “We’re democratizing access to wealth management solutions that can help more people invest in their desired lifestyle and future financial security.” Sycamore is establishing itself as a comprehensive resource for Nigerians seeking to borrow, invest, and build wealth efficiently.

In summary, Sycamore’s receipt of the SEC fund manager license marks a pivotal expansion into asset management, aiming to meet the investment needs of everyday Nigerians. By offering diverse portfolios and enhanced technology-driven services, the company is poised to address gaps in the local investment landscape dominated by legacy and fintech firms. This strategic initiative underscores Sycamore’s commitment to democratizing access to wealth management solutions, promising future growth in both the Nigerian and African markets.

Original Source: techcabal.com