Advertise with fastmoving.co.za
 
 

Futuregrowth Asset Management, on behalf of clients, has acquired a non-controlling stake in the shareholding of Retail Capital.
Futuregrowth Asset Management, on behalf of clients, has acquired a non-controlling stake in the shareholding of Retail Capital.

Futuregrowth’s Development Equity Fund acquires stake in SME Funding Business

ECONOMIC NEWS

Issued by HWB Communications - Sep 12th 2017, 10:22

Futuregrowth Asset Management, on behalf of clients, has acquired a non-controlling stake in the shareholding of Retail Capital, a merchant cash advance business that focuses on funding the South African SME market.  

Futuregrowth Asset Management, on behalf of clients, has acquired a non-controlling stake in the shareholding of Retail Capital, a merchant cash advance business that focuses on funding the South African SME market.

Since its inception in 2011, Retail Capital has advanced more than R1 billion to thousands of businesses in the country - including restaurants, retailers, medical practitioners and beauty spas. Retail Capital provides easy access to funding that is transparent through fair and responsible processes and is striving to make a positive impact to the South African economy through job creation and social responsibility by empowering entrepreneurs.

“This investment is a strong vote of confidence in Retail Capital’s innovative business model, the quality of our operations and systems, and the strength of our management team,” says Karl Westvig, CEO of Retail Capital. “Futuregrowth has been a long-standing partner providing the business with funding and we look forward to a continued long-term partnership.”

The investment will be used to enhance Retail Capital’s offering to SME retailers and restaurants in South Africa, which will provide the necessary economic support South African entrepreneurs so desperately need.

Considered a non-traditional financial services funding solution, a merchant cash advance (MCA) is structured as a lump-sum payment to a business in exchange for an agreed-upon percentage of future credit card and/or debit card sales.

Westvig says that MCAs have the ability to effect great change on the SME market in South Africa – which is often in need of quick and easy access to working capital.

Conway Williams, an investment analyst at Futuregrowth, says that they have a long and successful track record of co-investing alongside management and share Retail Capital’s vision of social development and empowerment. “We are excited about the role that Retail Capital plays in providing funding in the SME space, which has historically suffered from a lack of access to capital. Management’s innovative business approach is commendable and fits with our philosophy of growing small businesses in South Africa. We are excited about our investment and look forward to a long and mutually beneficial partnership”.

Amrish Narrandes, investment analyst at Futuregrowth, says the Development Equity Fund, has a long track record of making equity investments with a developmental focus in sectors such as education, affordable housing, healthcare and SME development, and hopes to increase its exposure to SMEs in the future.

In May this year, Global Credit Ratings (GCR) accorded Retail Capital a national long-term national scale rating of BB(ZA

 

Read more about: sme | sa economy | retail capital | futuregrowth

Related News

The Block&Coin Summit - heralding the new economy in Africa
18/01/2018 - 13:16
The recent roller-coaster bitcoin price has moved the topic of cryptocurrencies and the blockchain from geeky chat rooms to boardrooms and dining room tables.

Milk price hits four-year high
18/01/2018 - 09:08
The producer price for milk reached R5,10/ℓ to R5,20/ℓ in December, its highest level since 2014, according to the Milk Producer’s Organisation (MPO).

Black Friday boosted retail November retail sales by 8.2%- surprising economists
17/01/2018 - 15:00
Black Friday boosted November 2017’s retail sales to 8.2% — double the annual growth expected by economists.

SA’s bulk exports reach record high in 2017
12/01/2018 - 13:46
SA’s bulk export volumes increased by 4.9% in 2017 to a new record of 171.3-million tonnes, after falling by 2.8% in 2016 to 163.3-million tonnes, data from the Transnet National Ports Authority (TNPA) showed on Wednesday.

Manufacturing output growth beats expectations
11/01/2018 - 14:06
SA’s manufacturing output grew 1.7% in November from the same month in 2016, beating the economists’ consensus of 0.45%, Statistics SA reported on Thursday.