Entrepreneur-focused small and medium enterprise financing specialist Preference Capital is entering a new growth phase after securing a roughly R350m investment from Titan Premier Investments, a South African private investment holding company led by billionaire retail magnate Dr Christo Wiese.As the financial services group expands its support for businesses that serve as the lifeblood of the local economy, Preference Capital CEO Jonathan Goldberg says both companies have a common vision.“The Titan team shares in our belief that creating a thriving economy lies in the hands of owner-managed and family-run businesses,” says Goldberg.“Their investment reflects confidence in our approach and our ability to deliver more responsive, sophisticated funding solutions to this critical sector of the market.”Wiese says his decades of experience backing local businesses have shaped his view of what truly drives sustainable growth.Dr Christo Wiese of Titan Premier Investments says owner-managed businesses are the most resilient and valuable building blocks of any economy. (Preference Capital Group) “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,” he says. “These are the businesses Preference Capital exists to serve, and Titan is proud to play a role in helping them reach their potential.”Closing the missing middleAccording to Goldberg, 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,” he says. “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.Flexible funding built for growthIn addition to its core offering, which includes asset finance, trade finance and business loans, Preference Capital has positioned itself as a corporate investment bank for owner-managed businesses.The company combines 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.Preference Capital supports businesses generating up to R1bn in turnover and caters to a wide range of funding requirements, offering unsecured loans from R100,000 to R7m and secured facilities to a maximum of R60m.Since launching in 2015, the organisation has provided entrepreneurial funding to over 10,500 businesses, totalling more than R10bn.“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,” says Goldberg.Investment to drive expansionThe investment by Titan 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 the company’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.This article was sponsored by Preference Capital Group.