Volition Cap, a Nigerian-based asset management company empowering the middle class has secured a fund management license from the Nigerian Securities and Exchange Commission.
The license according to the company allows its operations as a registered fund manager in Nigeria, as it prepares to launch a suite of retail and institutional investment products for Africans living on the continent and in the Diaspora.
Subomi Plumptre, CEO of Volition Cap speaking on the license, said, “Our company was founded by entrepreneurs who truly understand the daily struggles of the middle class. From our operation’s inception, we have focused on empowering this group to attain financial success. The SEC license is a significant milestone for us as we introduce retail and institutional products to drive economic growth.”
Citing a report from African Development Bank, the asset management firm said Africa’s middle class has grown to 34 percent over the past three decades, compared to the shrinking average of 60 percent and 50 percent in Europe and America, respectively.
“According to a 2019 report on ‘The Investment potential of Nigeria’s middle Class, despite their growing wealth, the majority of the liquid assets of this socio-economic class are primarily held in bank savings and deposits, leaving a vast gap for economic empowerment in developing countries.”
However, the company said it also enables working professionals in diaspora to transform remittances to investments, and not just gifts, so they can sustainably finance family upkeep back home and acquire local assets. It also provides services for HNIs and institutional investors, including fund and treasury management, business investment advisory, and individual or family investment plans.
The asset management firm said it will reduce the cost of investment services and the challenge of easy access by leveraging technology to distribute products. “With the credibility and trust that an SEC license confers, this home-grown business is poised to scale its bespoke products across Africa and the Diaspora.”
The company said it has designed and managed a 3,000-member African cooperative which led to contributors achieving a financial independence rate of up to 75 percent within three years. The firm added that it developed a $30 million private equity fund for agriculture and real estate projects in Africa and disbursed over $250,000 to support local filmmakers through its entertainment and media fund.