Sikamaster has a wide network of partners that guarantee a strong capital-adequacy performance, and a stronger funding position, with in-house funding partners covering the full share of loans, making us less reliant on external funding - fiscally-fit. We do not take and/or accept deposits from clients before lending.
There are no plans to accept deposits in the near or foreseeable future, for reasons not limited to;
• Client control of our growth strategies
• 'Short-termism' of most depositors and/or external investors
• Seeming get-rich quick mindset of most depositors and/or retail investors
• Accountability to diverse depositors and investors
• Attendant operational cost of providing fund management of diverse, mostly unsophisticated risk profiles
• Incompatibility of client deposits and our value-oriented loan portfolio construction strategies
• Ample in-house Capital Buffers
• Our preference for sustainable & reliable patient capital over unsustainable & unreliable pressure funds.
• Regulatory Burden - Rising cost of managing external capital or taking deposits
• Maturity intermediation and/or transformation risks (not limited to liquidity/tenure mismatch)
• The quest to build and/or grow a deposit/debt-run-proof independent direct lender
• Our preferred way of treating Non-Performing Loans (NPLs), at variance with that for deposit-taking lenders
If Sikamaster doesn't need deposits to make loans then where does the money come from?
We lend our own funds as well as additional solid and reliable funding sources from in-house (sister companies and dedicated funds), giving us the flexibility to advance our objectives without the encumbrances of any external investor or depositor demand. Credit funds are always part of sister and/or group companies. A deliberate funding vehicle to sustain our growth, without ever having to accept and/or rely on client deposits or external investors to lend.
A dedicated group of diverse in-house financial providers (made up of hedge funds, private equity, proprietary shops, etc), including but not limited to;
• TDG MTN Yellow Save Cash Holdings (Passive Portfolio)
• TDG MTN MOP Holdings (Shareholders' Tier III Allocation)
• Other Tier III Shareholder Allocations
• XAU 79