Table of Contents
Key Points
- ARC increased its stake in Alexforbes from 42.3% to 45.83%, raising its market value to $264 million, signaling confidence in the company’s long-term prospects.
- ARC’s deeper investment aligns with its strategy to back high-value financial firms like Alexforbes and position it for future growth in South Africa’s financial sector.
- Regulatory compliance was ensured, with ARC and Alexforbes fulfilling regulatory compliance and adherence to market regulations.
African Rainbow Capital (ARC), a private equity firm founded by South African billionaire Patrice Motsepe, has raised its stake in Alexforbes Group—a leading financial services provider in South Africa—to more than $260 million.
The move, disclosed in a regulatory filing on February 24, 2025, underscores the strengthening financial relationship between ARC and Alexforbes. ARC has been a significant investor in Alexforbes for years, playing a key role in the company’s strategic growth within South Africa’s financial services sector.
Strengthening its financial sector footprint
With this latest increase, ARC’s stake in Alexforbes has risen from 42.3 percent which was less than $200 million to 45.83 percent, now valued at R4.86 billion ($264.34 million). The decision signals confidence in Sanlam’s strong market standing and long-term prospects.
By deepening its investment, ARC reinforces its long-term commitment to Alexforbes, aligning with its strategy to back high-value financial services firms. The transaction enhances ARC’s influence over the company, positioning it to drive future growth and strategic initiatives.
Alexforbes, listed on the Johannesburg Stock Exchange (JSE), specializes in retirement, investment, and insurance solutions. The company has seen steady growth, benefiting from increased institutional investment and a robust South African financial services landscape.
ARC has notified the Takeover Regulation Panel of its increased stake, with Alexforbes' board confirming compliance. Company Secretary CH Wessels affirms full disclosure, ensuring transparency and investor confidence.
Patrice Motsepe’s expanding influence
ARC, established in 2015 as a subsidiary of Motsepe’s Ubuntu-Botho Investments, has consistently focused on identifying opportunities in the South African and African financial services and diversified investment industries. The company’s origins trace back to 2004, with Ubuntu-Botho Investments aiming to foster black-controlled capital.
Motsepe, Africa’s first Black billionaire with a fortune of $2.8 billion, continues to expand his footprint in South Africa’s financial sector through ARC. The firm’s growing stake in Alexforbes aligns with its broader vision of enhancing financial inclusion and strengthening key market players. The investment is expected to bolster Alexforbes’ strategic initiatives while providing ARC with greater leverage in shaping the company’s future direction.
