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Investments

ARC is a South African registered investment holding company that seeks to utilise its empowerment credentials, balance sheet strength, the business track record of its leadership team and its brand to invest in financial services distribution businesses, to take strategic equity stakes in underlying financial services product providers and to acquire majority or significant minority interests in non-financial services businesses.

When considering investments, ARC seeks:

  • Significant minority stakes with strong minority protections
  • Subscription for primary capital into each new investment
  • Synergies and cross-selling opportunities within existing investments
  • Early stage businesses with significant capital growth potential

 

Structure

ARC Fund (an en commandite partnership) has been established in South Africa as an evergreen (open-ended) investment vehicle.

ARC has contributed 49.9% of its interests in financial services companies (through a holding company) and 100% of its interests in nonfinancial services companies to ARC Investments in return for shares in ARC Investments. ARC Investments will contribute the investments to the ARC Fund as a capital contribution.

UBI GP (a Black-managed and controlled fund manager in terms of the DTI Codes) has been established to act as the General Partner and manager of the ARC Fund, and in return will earn an annual fund management fee.

To ensure that ARC Investments is permanently Black-controlled, ARC will hold a voting-only B share in ARC Investments:

  • The B share will allow ARC to exercise sufficient votes to ensure that ARC and other Black shareholders have 51% of the votes in ARC Investments should the BEE shareholding (measured with reference to all BEE shareholders, including ARC) in ARC Investments decrease below 51%.
  • These voting rights will fall away should ARC’s shareholding in ARC Investments fall below 26.1%.
  • The B share will have no economic rights.

The structure ensures that new and existing investee companies treat the ownership from the ARC Fund as if the ownership were held by Black investors.

 

Investments

ARC Fund holds a diversified portfolio of high quality investments valued at R4.5 billion.

We are ungeared.

The strong pipeline of investment opportunities is an opportunity to create significant scale and portfolio diversification.


 
Investments
A2X

A2X is South Africa’s third new stock exchange, providing a secondary listings platform for JSE-listed companies.

Acorn Agri

Acorn Agri is a long-term investor focusing on food and food processing, agricultural- processing and the agricultural value chain.

AfriGem

AfriGem Investments (AfriGem) is a Black Owned Investment Holding Company managed by GemCap Investment Management (‘GemCap’).

Afrimat

Afrimat is a Black-empowered construction supplies manufacturer servicing the building, construction, road, rail and mining sectors. Afrimat is currently the largest listed construction materials producer in South Africa.

Alexander Forbes Group Holdings

Alexander Forbes Group Holdings is a financial services group focusing on employee benefits, financial services and investment solutions for institutional and individual clients.

Alternative prosperity

Alternative Prosperity is a majority black-owned company that offers products and services in Responsible Investment, Transformation and Sustainability.

ARC Health

ARC Health is a private investment company, majority owned by ARC and managed by ARC Health Managers.

ARC Real Estate

ARC Real Estate ("ARC RE") is a joint venture between ARC and Signature Investment Holdings.

Autoboys Holdings

Autoboys Holdings is a private company consisting of three businesses, primarily in the auto parts and glass replacement industry, entailing Autoboys Glass Services (ABGS), Autoboys Automotive (ABA) and Parts Portal (PP).

BKB

BKB is an established business in the South African agriculture industry. It is best known for its activities in the wool and mohair market, however, it is a well-diversified business with a national footprint.

Bravura Group

Bravura offers astute and sound financial solutions underpinned by an independent and flexible approach, as well as rigorous risk management practices.

Capital Appreciation

Capital Appreciation is a JSE-listed Special Purpose Acquisition Company that acquires companies with promising growth potential.

Colourfield Liability Solutions

Colourfield was co-founded by Nick Sennett, Costa Economou and Shaun Levitan in 2010 and today is the largest investment manager of third-party goals-based investment solutions.

Constellation Capital

Constellation Capital is a research and broking business in the South African equity and currency derivative markets.

EBS International

EBS International combines robust, scalable and dependable technology with a highly focused commercial strategy.

Edge Growth

Edge Growth is a leading enterprise and supplier development firm that focuses on strategic partnerships between business and SME development, commercial leadership and enterprise development strategy.

Elandsfontein Exploration and Mining

Elandsfontein is a subsidiary of Kropz SA Pty Ltd, an explorer, mine developer, miner and supplier of phosphate rock in sub-Saharan Africa and worldwide.

EOH

EOH is the largest technology services company in Africa, and has a wide range of industry consulting, IT services, software, IT infrastructure, industrial technologies and business process outsourcing solutions.

Global Asset Management

Global Asset Management specialises in arranging debt and mezzanine capital for large infrastructure projects.

Humanstate

Humanstate is a collection of companies and brands including PayProp, as the largest commercial entity, as well as GivenGain and the GivenGain Foundation.

Indwe Risk Services

Indwe Risk Services is an independent South African short-term insurance broker that provides personal insurance, business insurance and specialist risk consulting services to private, commercial and corporate clients.

LifeCheq

LifeCheq offers holistic, goal-based and fully independent financial advice to professionals and entrepreneurs.

Majik Holdings

Majik Property Holdings is a property holdings company registered in the British Virgin Islands.

Metrofibre Networx

South Africa’s first globally compliant Carrier Ethernet 2.0 open access fibre network is owned and operated by Metrofibre Networx. It enables internet service providers to offer high-speed internet to their customers.

ooba

The Ooba group comprises of companies that provide mortgage originator services that assist home buyers with sourcing bond financing for residential property.

Rain

Rain is intended to be a "full service" Mobile Network Operator, focusing on data as a primary offering.

Santam

Santam is an authorised financial services provider that offers short-term insurance.

Sinayo Securities

Sinayo Securities specialises in the equity sales and trading of listed South African companies. It provides quality services to institutional investors. Sinayo Securities is majority owned by black women and Level 1 B-BBEE.

Val De Vie

Val de Vie Estate is South Africa's premier residential estate. Located in the picturesque Paarl-Franschhoek Valley, the estate is known for its world-class polo facilities, Jack Nicklaus Signature Golf Course, mountain bike trails and wine cellar.