Billionaire Motsepe’s Investment Firm Mulls IPO, Plans 30 Deals

JOHANNESBURG (Capital Markets in Africa) – South African billionaire Patrice Motsepe’s African Rainbow Capital (Pty) Ltd. plans to close as many as 30 deals by June and is considering an initial public offering or starting a fund to attract capital for the next phase of the investment company’s growth strategy.

ARC, as it’s known, is finalizing 15 transactions and hopes to conclude another 15 in the first six months of this year, Johan van Zyl, co-chief executive officer of the South African investment company, said in an interview at the annual meeting of the World Economic Forum in Davos, Switzerland. After using its own money for these deals, ARC aims to find partners who will invest their own cash for further expansion through avenues such as raising a fund or a share sale, Van Zyl said.

ARC had its official start in April last year and said its focus would be on South Africa with investments in a broad range of financial-services ventures. To date it has done 25 deals over and above its investment in insurer Sanlam Ltd. and has spent about $500 million, according to Van Zyl. It is invested in companies including advisory firm Bravura Group, insurance broker Indwe Risk Services Pty Ltd., mortgage originator Ooba Pty Ltd. and a property development in the Western Cape called Val de Vie, which has a polo estate that hosted Britain’s Prince Harry.

In the next six months many of ARC’s investments will be in “listed entities” and fairly big companies, Van Zyl said. The deals will focus mainly on insurance firms while also including industries such investment management, securities trading, property and health, he said.