skip to Main Content

Investments

All investments are made with the ARC Fund, which has 100% of all Diversified (non-financial) Investments and 49.9% of all Financial Services Investments. The balance of 50.1% of Financial Services Investments is held in ARC Financial Services, a 100% subsidiary of ARC.

As at 30 June 2020, the ARC Fund had an Intrinsic Portfolio Value of R11 139 million (2019: R9 359 million) of which R 7 728 million (69.4% of the portfolio) is attributable to the Diversified Investments portfolio and R3 411 million (30.6% of the portfolio) is attributable to the Financial Services portfolio.

  • Financial Services
  • Diversified Investments

The ARC Fund’s strategy for the Financial Services portfolio is to be an investor in leading providers of products and services in the South African financial services sector and thereby having exposure to a holistic financial services offering to clients. The objective is to follow a focused financial services’ sector strategy that seeks to develop revenue synergies between investments in distribution businesses and investments in related financial services product providers.

Pursuant to this strategy, the ARC Fund, through ARC Financial Services, aims to establish a significant presence in the following underlying financial services product provider sectors: banking, asset management & insurance (life insurance, short term insurance, health), and specialist financial services businesses.

Our financial services strategy is premised on securing a significant position in the distribution of financial services products and accelerating the growth of financial services product providers within its portfolio. ARC Financial Services may invest in start-up businesses whose revenue growth can be expected to be significantly enhanced by access to the underlying distribution businesses.

All of ARC Fund’s interests in the financial services sector will be acquired through ARC Financial Services.

Our investments in businesses spanning asset management and insurance represent a key part of our Financial Services strategy. Most of the businesses are positioned to draw flows from institutional clients, with their competitiveness being enhanced by solid empowerment credentials as well as cost-effective solutions across pension funds as well as life, short-term and health insurance businesses.

Alexander Forbes Group Holdings
A specialised financial services group focusing on employee benefits and investment solutions for institutional clients and the financial wellbeing of individual clients.
Rand Mutual Holdings
Rand Mutual Holdings
Handles the administration of claims for occupational injuries and diseases according to the Compensation for Occupational Injuries and Diseases Act (COIDA).
Afrocentric
Black-empowered investment holding company that provides healt administration and health risk management solutions to the healthcare sector.
Colourfield
An asset management firm specialising in liability-driven investment management solutions.
Indwe Risk Services
An independent general insurance broker providing insurance services to private, commercial and corporate clients.
EBS International
EBS International
Provides hosted member administration and asset management solution platforms.
LifeCheq
An independent financial advisory company that targets the middle market in South Africa combining robo advice with human interaction.
Lima Mbeu
An investment management group focusing on institutional retirement funds in the private and public sector market segments.
InFund Solutions
Business is positioned to take advantage of amendments to the Pension Fund regulations
Khumo Capital
An investment business providing bespoke investment solutions using traditional and non-traditional investment instruments.
National Care Solutions
A stock exchange providing the market with an efficient and cost-effective trading option to secondary list and trade shares.
Umvuso Health
A stock exchange providing the market with an efficient and cost-effective trading option to secondary list and trade shares.
African Rainbow Life
A stock exchange providing the market with an efficient and cost-effective trading option to secondary list and trade shares.

Our significant investment in banking, which was made more recently relative to our other investments, completes our Financial Services strategy. Our banking investments span to key assets: TymeBank in South Africa and Tyme Global, which is domiciled in Hong Kong and houses the advanced technology which TymeBank uses. We believe by leverage technology we can make banking simple and affordable, by implementing a unique low-cost banking fee model and customer experience value propositions. In the context of investee companies also offering cost-effective product solutions to customers, our investment in banking will allow for synergistic opportunities and thus continue to unlock value for shareholders.

TymeBank
A leading low-cost transactional bank to the traditionally under-served and under-serviced mass market segments.
Tyme Global
A Hong-Kong based company that owns the intellectual property used by TymeBank.
AI Fund
The AI Fund identifies and invests in business that can benefit disproportionately from the use of artificial intelligence, particularly algorithmic decision making to help organisations make high-frequency decisions in multiple places in their value chain.

Our Specialist Financial Services businesses are unique and/or niche players with specialist knowledge that have the ability to offer its services and products to a much broader client base by leveraging its relationship with relevant investee companies in the portfolio.

Capital Legacy

Capital Legacy is a major player in will drafting and estate administration. Operating since 2012, the company has identified improved, efficient and cost-effective solutions to will drafting, estate planning and execution.

ooba
One of South Africa's leading mortgage originators with a strong life and general insurance business flowing from the origination business
Sinayo
Sinayo Securities
An independent black-owned and controlled memeber of the JSE providing core services of securities trading and research.
Bravura
An independent South African investment banking firm, specialising in corporate finance, structured solutions and property asset management services.
A2X
A stock exchange providing the market with an efficient and cost-effective trading option to secondary list and trade shares.
QED
The largest independent actuarial advisory business in Africa, operating across 17 countries.
Edge Growth
A leading enterprise and supplier development firm that focuses on underlining strategic partnerships that connect business and SME development, commercial leadership, corporate citizenship and Enterprise Development Strategy.
Constellation
Primarily a derivatives trading and structuring business that trades only back-to-back and does not hold proprietary positions.
Alternative Prosperity
A majority black-owned company that offers products and services in responsible investment, transformation and sustainability.

While investments in Financial Services businesses are guided by our core experience and successful track record in managing financial services businesses, our approach with Diversified Investments is to partner with leading industry or sector specialists in sectors we believe will be key in the economy in years to come.

Investments in these sectors are made where demonstrable growth potential exist that would further the objective of delivering returns above the internal return target of 16%. We see these investments as a combination of growth assets as well as business that are about to reach a steady-state but still generate sustainable cash flows.

The strong and ongoing demand for data to facilitate communication is a key reason for identifying the telecommunications sector as an investment focus. Furthermore, our investments in this sector has been made possible due to our long-standing relationships we have with the owners of the businesses as well as the prized assets in these businesses. We believe these investment opportunities would not be readily available to a broad grouping of investors.

Rain
The telecommunications company has an initial focus on data as a primary offering and the goal of becoming a full-service mobile network operator.
Metrofibre
An internet infrastructure company that provides managed fibre-optic broadband connectivity in SA.

As requirements for empowerment across many sectors in the South African economy continue, we are likely to see established businesses outsourcing the management of some of its operations to a 3rd party with the requisite expertise and experience in knowledge-based and technology enhanced services. Being positioned as an empowered 3rd party will strengthen the likelihood of securing the institutional business.

GemCap
An investment holding company that focuses on knowledge-based, technology-enhanced services investments, with a specific focus on industry-wide platform and portal solutions.
Humanstate
A technology services group based in the United Kingdom that provides businesses and non-profit organisations with state-of-the-art web-based software applications, integrated with on-demand payment processing based on their global transactional platform.
Autoboys
The business provides after market automative parts and has a large share of glass replacements for the insurance industry.
Capital Appreciation
A JSE listed Special Purpose Acquisition Company established to pursue the acquisition of fintech businesses that deliver compelling, innovative and disruptive solutions.
EOH
The business, including its subsidiaries, is the largest technology services company in Africa and has a wide range of solutions.

Our investment in this sector is motivated by the continued demand for infrastructure development in South Africa and we believe the companies which we have invested in will be key providers of materials to infrastructure developers.

Afrimat
A leading black-empowered supplier to the resources, industrial minerals, mining, road, rail and construction sectors.
Kropz Group
Kropz Group
An investment business providing bespoke investment solutions using traditional and non-traditional investment instruments.
Last Mile Fund
A black-owned fund that takes advantage of opportunities that exist in the broader resource space created and accelerated by B-BBEE legislation.
GAM
Global Asset Management
A holding company focused on asset-based financing and development of alternative energy business, including renewables and waste to energy projects.

Real estate is a key strategic pillar of our investment portfolio. The objective is to establish a diversified real estate holding spanning across the spectrum to include retail, residential, commercial, listed, unlisted, real estate investment trusts, local and foreign property exposure.

Recent amendments to the B-BBEE Codes, whereby companies that dispose of a property asset have the ability to qualify for B-BBEE ownership points, provide a potential catalyst with regard to transformation in the property sector.

In conjunction with Signature Investment Holdings, which will be a joint venture partner of the ARC Fund, ARC Investments, through the ARC Fund, views itself as a credible B-BBEE participant with both the appropriate expertise and balance sheet to originate, structure and deliver on transactions in the sector.

Majik Property Holdings
A private equity structure that invests in commercial real estate in the United Kingdom through the Squarestone Growth Limited Liability Partnership.
Val de Vie
An established luxury residential estate located in Paarl, which includes Paarl Valley. Paarl is becoming a new node away from the Cape Town northern suburbs in the Western Cape.
Barlopark
Barlow Park
A partnership between Barloword, Atterbury and African Rainbow Capital to redevelop the prime Barloword Park Campus situated at 180 Katherine Street Sandton.

Agriculture and food production are identified as a strategic sector for investment. Internationally, food security is and will remain of great interest and South Africa (and Africa) is seen as a major potential contributor to food security.

Our interest in agriculture is focused on the secondary markets where processing, marketing and distribution takes place, and not the primary sectors where production takes place and which is known for significant input price as well as product price volatility.

Acorn Agri & Food
A long-term investor focusing on food and food processing, agricultural processing and the agricultural value chain.
RSA Group
RSA Group
Trades in fresh fruit and vegetables on behalf of its principles. The group has a market share of about 30%, spread across all the national fresh produce markets.
Subtropico
Operates in the services side of the food and agricultural sector. Includes fresh produce market agents, livestock agents (Vleissentraal), and other operating entities as well as 32% shareholding in KLK, which is an agri-business operating in the Northern Cape.
Fledge Capital
A sizeable platform to execute opportunities of financial and strategic value that are too small for the ARC Fund to invest in.
ARC Health
ARC Health focuses on businesses dedicated to the reform and restructuring of the private health industry within South Africa, while also working on initiatives to consolidate government healthcare spending.
ARC Investments
ARC Investments
Offers a unique investment proposition with its exposure to African Rainbow Capital's black-owned and controlled investments.
ARC Emerging Markets
An emerging markets private equity advisory firm focused on private markets across Africa.
Back To Top