Nigerian lender Sycamore expands into asset management with SEC licence

Sycamore, the Nigerian digital lender with ₦10 billion assets under management, has secured a fund manager licence from the Securities and Exchange Commission (SEC) to operate as a fund and portfolio manager. This move signals a significant expansion beyond its core lending business, aiming to tap into the growing demand for accessible investment options among Nigeria’s burgeoning retail and institutional investors.

The company will offer diversified portfolios across stocks, bonds, and money-market instruments in local and foreign currencies.

Its expansion is driven by customer demand, with its CEO Babatunde Akin-Moses noting that many of Sycamore’s 300,000 users, including freelancers and small and medium-sized enterprises (SMEs), have expressed a desire for accessible investment options.

“Securing our SEC license is the culmination of years of building institutional-grade compliance systems,” said Akin-Moses. “We’re not pivoting from lending; this is a strategic expansion that complements our core business.”

Nigeria’s investment market is shaped by a handful of dominant players—legacy firms like ARM, Stanbic IBTC, and FBNQuest, alongside newer fintech challengers such as Bamboo and Rise. While these platforms have made wealth management more accessible, most still cater to either high-net-worth individuals or tech-savvy retail investors. Sycamore sees an opening in the middle: freelancers, SMEs, and everyday Nigerians who lack straightforward investment pathways.

Sycamore has also appointed 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 Sycamore, having previously held roles at ARM Securities, FBNQuest Securities, and Profund Securities.

The company plans to launch an upgraded mobile app equipped with real-time investment analytics and AI-powered portfolio management. The app will also feature a multi-currency wallet, allowing users to hold and invest in USD, EUR, GBP, and NGN. Sycamore joins a growing list of Nigerian tech investment firms—such as  Bamboo and Rise— making wealth management services accessible to young Nigerians.

“We’re addressing a major gap in Nigeria’s investment market,” said Onyinye Okonji, Sycamore’s co-founder and CCO. “Traditional asset management has remained out of reach for many Nigerians. Our goal is to change that.”

Sycamore expects asset management to become a significant revenue driver generating income through management fees and performance-based incentives. The company, however, has not disclosed specific growth projections. It plans to raise additional capital in late 2025 or early 2026 to support its growth ambitions across Africa.

In addition to traditional asset classes, Sycamore aims to offer alternative investments, starting with Real Estate Investment Trusts (REITs) and a USD-denominated investment product in the coming months. This strategic shift positions Sycamore to compete in a market saturated with digital investment alternatives, targeting both retail and institutional investors.

While Sycamore is best known for its lending business, Akin-Moses believes asset management represents the next frontier for the company.

“We’re democratizing access to wealth management solutions that can help more people invest in their desired lifestyle and future financial security,” he said.

Sycamore is now positioning itself as a one-stop shop for Nigerians looking to borrow, invest, and grow their wealth—one investment product at a time.