Preference Capital is entering a new growth phase following a roughly R350 million investment from Dr Christo Wiese’s Titan Premier Investments, as the financial services group expands its support for businesses that serve as the lifeblood of the local economy.
“The team at Titan Premier Investments, led by one of South Africa’s most successful entrepreneurs and business leaders, Dr Christo Wiese, shares in our belief and vision that creating a thriving economy lies in the hands of owner-managed and family-run businesses,” says Jonathan Goldberg, chief executive officer at Preference Capital.
“Their decision to invest in Preference Capital is indicative of our shared vision, and their confidence in our approach and proven ability to bring more responsive, sophisticated funding solutions to this critical sector of the market.”
Reflecting on decades of investing in South Africa, retail billionaire Wiese says: “I have spent a lifetime investing in South African businesses, and the lesson that has stayed with me above all others is that the owner-managed business, run by someone with skin in the game and a vision for the future, is the most resilient and most valuable building block of any economy.
Dr Christo Wiese, entrepreneur. Image: Supplied
“These are the businesses Preference Capital exists to serve, and Titan is proud to play a role in helping them reach their potential.”
According to Goldberg, the financial solutions Preference Capital provides are critical to growing the economy, as access to working capital and funding remains a major constraint for mid-market businesses.
“While banks and conventional lenders willingly provide funding for large corporates, and microfinance and informal lending channels have expanded to support the lower end of the market, most entrepreneurs find themselves stuck in the missing middle,” continues Goldberg.
“As access to capital remains the most significant bottleneck for local entrepreneurs, these growth-oriented businesses need easier access to credit to expand, innovate and create critical jobs.”
Preference Capital addresses this financing gap by offering tailored funding solutions designed around the realities of growing businesses.
In addition to its core offering, which includes asset finance, trade finance and business loans, the Preference Capital Group has positioned itself as a corporate investment bank for owner-managed businesses, combining the depth, structuring capability and commercial sophistication associated with larger institutions with the agility and responsiveness that growing businesses need.
“We provide bespoke and flexible funding solutions normally reserved for large corporates, which enables businesses to obtain inventory, equipment, vehicles, machinery, technology and other operational assets without the upfront capital expenditure,” says Goldberg.
Jonathan Goldberg, chief executive officer at Preference Capital. Image: Supplied
Preference Capital supports businesses generating up to R1 billion in turnover and caters to a wide range of funding requirements, offering unsecured loans from R100 000 to R7 million and secured facilities to a maximum of R60 million.
Since launching, Preference Capital has provided entrepreneurial funding to over 10 500 businesses, totalling more than R10 billion.
“What sets us apart from other providers is our customer-centric approach that builds genuine relationships with the business owners we support, which allows us to develop bespoke solutions for every client,” explains Goldberg.
The investment by Titan Premier Investments will strengthen Preference Capital’s balance sheet and support its ambition to scale its presence in South Africa’s mid-market as a trusted funding partner with an expanded product offering.
As part of the transaction, Preference Capital Holdings has purchased 100% of its subsidiary, BizCash, a fintech financing company that provides revolving credit facilities, term loans, invoice discounting, supply chain finance and working capital solutions.
The acquisition will bolster Preference Capital’s ability to provide agile, automated lending and broaden the suite of working capital products.
“The investment marks not only a change in gear for our business, but also reaffirms our market-leading position, and enables us to continue to uplift owner-managed and family-owned businesses in South Africa,” says Goldberg.
Brought to you by Preference Capital.
Moneyweb does not endorse any product or service being advertised in sponsored articles on our platform.
#Preference #Capital #R350m #capital #investment #Wieseled #Titan #Premier #Investments