Investment signals strong institutional confidence in the SME financier’s business model, credit philosophy and long-term growth trajectory

Preference Capital Group (PrefCap), a leading innovator in SME financing, has announced a further R200m capital injection, this time from African Bank. This latest raise follows closely on the heels of a R250m investment from Stanlib Asset Management, reinforcing PrefCap’s role as a key driver of SME growth in SA. 

These recent investments signal strong institutional confidence in PrefCap’s business model, credit philosophy and long-term growth trajectory — bringing total capital raised to just under R1bn in the past 12 months.

“Partnering with African Bank marks another important milestone in our journey to support SA’s SME sector at scale. Their backing is a strong endorsement of our credit philosophy, risk discipline, and long-term vision,” says Jason Sostak, Corporate Finance Executive at PrefCap. 

African Bank’s involvement follows a comprehensive due diligence process and reflects their shared vision of empowering underserved yet high-potential businesses that form the backbone of SA’s economy. 

This capital injection will allow PrefCap to expand its lending portfolio across industries, ensuring small and medium-sized businesses continue to access the fast, flexible funding they need to sustain operations, unlock growth and drive long-term economic impact. 

*This was First published by Business Day