ARC Investments is a permanent capital vehicle that was listed on the JSE on 7 September 2017. It is designed to offer public shareholders long-term capital appreciation by enabling them to invest in a permanently broad-based Black-controlled investment entity with a diversified indirectly held underlying portfolio of investments.
ARC has transferred an investment portfolio valued at c.R4.5 billion into ARC Investments, which ARC Investments has in turn transferred to ARC Fund, comprising:
- All of ARC’s non-financial services investments; and
- 49.9% of ARC’s existing financial services business, through a holding company
The targeted initial capital raising by ARC Investments will fund existing commitments and an investment pipeline. Since it was listed on the JSE, ARC is expected to be at least a 53% shareholder in ARC Investments.
ARC Investments offers access to ARC’s investment portfolio and future investments in companies across various industries, as well as an opportunity to participate in the growth and value creation of a company from a relatively early stage.
We provide the opportunity to invest alongside ARC through a listed platform by providing investors with liquidity through an efficient structure. ARC and the general partner of the ARC Fund provide B-BBEE credentials and professional networks that allow ARC Investments to access assets not otherwise available for sale, and to seek a BEE discount in exchange for an investment lock-in period.
ARC Investments interest in ARC Fund is subject to a market-related fee structure designed to minimise cash drag and align incentives, and a value investment that is expected to be realised over time as lock-in discounts unwind and investments in smaller ventures reach scale.