RMB Partners Genfin In Building Alternative Credit Platform
RMB Partners Genfin In Building Alternative Credit Platform. RMB, via its Family Office Group Solutions (FOGS) business, has acquired a 20% minority interest in Genfin Holdings (Pty) Ltd (Genfin Holdings) alongside key RMB family office clients, and has provided multi-tiered, holistic funding solutions for Genfin Holdings and its subsidiaries. The RMB investment and financing will help Genfin Holdings to continue to grow and expand their next-generation alternative credit business for the South African market.
Genfin Holdings subsidiaries include Genfin Business Finance (Genfin), which delivers alternative lending solutions for small and medium-sized enterprises (SMEs), as well as consumer lending through Kanga Finance (Kanga), an innovative developmental credit provider. RMB is also supporting Genfin Holdings, Genfin and Kanga at various levels in terms of financing, with multi-tiered and holistic solutions to support additional growth capital raises.
“The SME sector in South Africa is of major economic significance, and yet access to finance remains a challenge. Through this partnership, RMB is assisting Genfin to increase its lending capacity and further expand its funding support with smart, flexible and robust funding solutions underpinned by a credit risk model that pioneers responsible lending on an unsecured basis, facilitating cash flow and long-term business health,” says Jaco Erasmus, CEO of Genfin.
In addition to business finance, the Group will also be expanding its consumer lending through Kanga, which specialises in providing fast, agile financing specifically for home improvements through a building merchant network. This unique offering helps South Africans to improve their living circumstances without the onerous process of accessing credit through traditional means, supporting financial inclusivity for those who may not be able to access credit otherwise.
“RMB has fostered a long-standing relationship with Genfin Holdings and its shareholders as a strategic funding partner. This equity investment, along with the bespoke debt funding solution will enable Genfin Holdings group to provide further growth capital to its subsidiaries, which should directly impact funding availability for SMEs and consumers in South Africa. Working together, we are making a positive contribution to South Africa’s financial landscape and adding significant value to society,” concludes Hugo Le Roux of RMB FOGS.
