Stanlib backs SME financier Preference Capital with R250m funding

Preference Capital Group (PrefCap) — an innovative financial services provider specialising in small and medium-sized enterprise (SME) financing — has secured an additional R250m in funding from Stanlib Asset Management.

This significant boost comes just weeks after PrefCap announced a R450m funding line from Rand Merchant Bank (RMB), bringing the total capital raised during the past 12 months to R700m. 

The relationship with Stanlib further strengthens PrefCap’s position as a market leader in providing accessible and flexible financial solutions to South African SMEs, which continue to be vital drivers of economic growth and job creation.

This capital injection comes at a time when many SMEs face challenges accessing traditional bank financing, making PrefCap’s role in the financial ecosystem increasingly important. 

Stanlib’s decision to provide funding stems from its rigorous assessment of PrefCap’s lending practices, risk management framework, and growth potential. The asset manager has highlighted PrefCap’s track record of sustainable growth and commitment to responsible lending as key factors in its decision. 

“This additional funding from Stanlib reinforces the confidence that institutional investors have in our business model and growth trajectory,” says Mike du Plooy, PrefCapCOO.

This article was sponsored by PrefCap.