South Africa: Creation Capital in logistics sector deal
Creation Capital has closed a debt investment of about $4.2 million into Quest Capital Solutions.
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Creation Capital, a South African-based private credit asset manager, has closed a R75 million (about $4.2 million) debt investment into Quest Capital Solutions.
Founded in 2012, Quest Capital Solutions provides financing, asset management, servicing and maintenance, as well as insurance for rent-to-own trucks and trailers in the SME sector.
“Hesitancy by the capital markets to lend to smaller counterparts on non-standard terms have constrained financing to SMEs. This is where private credit players can step in to help bridge the SMME financing gap in South Africa which according to a 2025 Finfind report is estimated at R350 billion (about $19.7 billion). This is a concerning figure considering the critical role SMMEs play in the economy, being that SMMEs form 91% of formalised businesses in South Africa as per the Banking Association of South Africa,” said Freddy Magoro, chief investment officer of Creation Capital.
“We particularly valued Quest Capital Solutions’ end-to-end approach when assessing the investment opportunity. The team’s ability to provide financing facilities, asset management, maintenance and insurance to SMEs in the sector is what we saw as a key differentiator. This allows the SMEs financed by Quest Capital Solutions to spend more time on operations and execution,” he added.
Charl Lehmann, CEO of Quest Capital Solutions, commented: “We are proud to partner with Creation Capital through their funding facility, which plays a key role in supporting the continued growth of our business. This funding will enable us to expand our operations, reach new markets, and serve a broader range of clients within the transport sector.”
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