Preference Capital (PrefCap), one of SA’s leading SME lenders, has successfully raised R500m in growth capital from Futuregrowth Asset Management.
The latest funding marks a significant milestone in PrefCap’s journey, strengthening its ability to expand its lending capacity, diversify its product offerings, and accelerate its mission to become the preferred funder for owner-managed businesses across SA.
“This investment is part of our strategy to back institutions that truly understand and can better support the SME market. SMEs are the backbone of SA’s economy, yet they continue to face barriers in accessing suitable funding arrangements. PrefCap’s proven ability to deliver flexible, sustainable solutions made this a compelling opportunity — one that aligns perfectly with our mandate to back businesses driving real economic impact,” says Lee Schilder, Private Debt: Dealmaker at Futuregrowth Asset Management.
This capital raise enables us to scale more effectively, deepen our support for SMEs, and continue building innovative, sustainable lending solutions that contribute meaningfully to economic growth
— Jonathan Goldberg, PrefCap CEO
“Securing this R500m facility from Futuregrowth represents not just a vote of confidence in our strategy, but also a clear indicator of the next phase of our growth trajectory,” says Jason Sostak, Corporate Finance Executive at Preference Capital.
“This capital raise enables us to scale more effectively, deepen our support for SMEs, and continue building innovative, sustainable lending solutions that contribute meaningfully to economic growth,” says Jonathan Goldberg, PrefCap CEO.
This announcement follows a series of capital raises during 2025, including R250m from Stanlib Asset Management, R200m from African Bank, and R100m from Rand Merchant Bank. With the latest Futuregrowth investment, PrefCap has raised over R1bn in a single year, a clear demonstration of market confidence in its business model, credit practices and long-term strategy.
PrefCap continues to grow its footprint in the SME lending market through technology, building genuine client relationships, and providing fast, flexible capital solutions. This new raise positions the company to unlock further growth, support more sectors and cement its role as a key enabler of SA’s entrepreneurial economy.
About PrefCap
PrefCap is a leading non-bank financial services provider in SA, specialising in SME lending solutions designed to support the growth of owner-managed businesses. Through a combination of technology and personalised service, the company provides fast, tailored funding solutions that help SMEs thrive.
About Futuregrowth
Futuregrowth manages over R206bn of assets* on behalf of its investors which are predominantly South African retirement insurance and retail funds. Founded in the wake of the new democratic SA, Futuregrowth has been the leader in responsible and developmental investing in the South African asset management landscape for three decades.
This article was sponsored by PrefCap.
*As at December 31 2024.
