VFD Group seeks capital market financing for creative industry

The Managing Director of Splitar Limited, Mr Folagbade Adeyemi, has stated that for Nigeria to fully harness the potential of Entertainment and Media, there is compelling need to solve the problems of liquidity, efficiency, and barriers to entry to the industry..

Adeyemi, was making a keynote speech at the Capital Market Correspondents Association of Nigeria (CAMCAN) quarterly Forum, sponsored by VFD Group Plc.

Speaking on the theme: “Beyond Tradition: Increasing Relevance of Alternative Assets in Capital Market,” Adeyemi stressed the need for increased financing for the entertainment and media industries to boost foreign exchange earnings and economic development.

He noted that VFD Group is actively pursuing an exchange platform tailored to the media and entertainment sector, offering diverse investment opportunities for both domestic and international investors.

Adeyemi disclosed that SplitXchange, currently in development stage by the Group, would offer a platform for financing the media and entertainment industry, among other alternative assets.

He noted that seeing the huge potential in the alternative assets, Splitar Holdings through the Split Exchange, would drive the alternative assets space with its revolutionary digital exchange.

With Nigeria’s estimated population at 208.8 million people, Adeyemi highlighted the increasing demand for Nigerian content.

Speaking on the potential of Entertainment and Media, specifically, Adeyemi noted that globally there is an average market size of $41 billion as at 2021 with an estimated 4.2 per cent growth rate. However, the country earns $5 billion from the E&M, while the United States earn $750 billion from same sector; and United Kingdom, $140 billion.

“In today’s market, the quick conversion of assets into cash is a challenge due to the absence of a well-structured marketplace that oversees and regulates these assets”, he said.

“The automation of processes such as compliance, escrow account management, dividend distribution, corporate action management, and drag-along actions technology presents a significant challenge in today’s alternative market.

“The high initial cost of assets in this market restricts participation to only affluent individuals and corporate investors.”

Earlier in his introductory remarks, Head of Marketing and Corporate Communication at VFD Group, Mr. Muyiwa Olowoporoku,  noted that the Group has been building an industry-agnostic proprietary investment company with a portfolio of over 40 businesses across various sectors and geographies, creating innovative products and solutions for the African market, since 2009.

He said with extensive multi-sector expertise, VFD Group seeks out viable opportunities that cater to the investment needs of Retail & Institutional Investors across all tiers for direct market gain.

“We use our solid investment expertise and deep understanding of market fundamentals to secure investments that provide the best returns to our shareholders”, he said.

‘’The core of our business strategy is to create value in the Nigerian and African informal sectors while developing innovative and accessible products and solutions in the formal sector.

“Our diverse portfolio, which includes financial services, asset management, real estate, and Fintech, to name a few, represents a uniquely diversified investment bouquet that helps us manage risk and allows us to build an ecosystem with various complementary offerings”.