Sycamore, a Nigerian digital lender managing assets worth ₦10 billion, has obtained a fund manager license from the Securities and Exchange Commission (SEC) to operate as a fund and portfolio manager. This strategic move signifies a significant shift beyond its primary lending business, aiming to cater to the increasing demand for accessible investment options among Nigeria’s growing retail and institutional investors.
The company will provide diversified portfolios encompassing stocks, bonds, and money-market instruments in both local and foreign currencies.
The decision to expand comes as a response to customer demand, with many of Sycamore’s 300,000 users, including freelancers and small and medium-sized enterprises (SMEs), expressing interest in accessible investment opportunities.
The company’s CEO, Babatunde Akin-Moses, highlighted, “Securing our SEC license is the result of years spent building institutional-grade compliance systems. This expansion is not a shift from lending but a strategic move to complement our core business.”
Sycamore has chosen Oluwagbenga Magbagbeola, former Managing Director of ARM Securities, to lead its new division, Sycamore Investment and Asset Management Limited (SIAML). Magbagbeola brings 17 years of capital markets experience to the company, having previously held roles at various securities firms.
The company is set to introduce an upgraded mobile app equipped with real-time investment analytics and AI-powered portfolio management. The app will also include a multi-currency wallet, enabling users to hold and invest in USD, EUR, GBP, and NGN.
By offering traditional asset classes and alternative investments like Real Estate Investment Trusts (REITs) and a USD-denominated product in the near future, Sycamore is strategically positioning itself to compete in the digital investment market, targeting both retail and institutional investors.
Sycamore’s focus on asset management represents its next phase of growth, aiming to provide wealth management solutions that are accessible to a broader range of Nigerians.
Sycamore now aims to be a comprehensive platform for Nigerians seeking to borrow, invest, and build their wealth, one investment product at a time.