Patrice Motsepe launches African Rainbow Capital

11 April 2016

BILLIONAIRE businessman Patrice Motsepe on Thursday launched African Rainbow Capital (ARC), an investment company focused on financial services and private equity.

The company, jointly headed by former Sanlam CEO Johan van Zyl and Sanlam Investments CEO Johan van der Merwe, has already quietly made investments in insurance broker Indwe Broker Holdings and backed JSE-listed special purpose acquisition company Capital Appreciation, but it was only officially introduced to the business community on Thursday.

ARC is a subsidiary of Ubuntu-Botho Investments, Sanlam's empowerment partner. Its 14.5% stake in the insurer is now valued at R17bn. Mr Motsepe says some of this capital is now being invested in ARC.

Mr Motsepe chairs the investment company, while former Sanlam finance chief Machiel Reyneke joins Mr Van Zyl and Mr Van Der Merwe on the executive committee as a director.

Ubuntu-Botho CEO Rejoice Simelane, African Rainbow Minerals director Andrew Matube and former Nedbank CEO Tom Boardman round out the rest of the board.

It has been a long journey for Mr Motsepe and Ubuntu-Botho. During a panel discussion at the launch, he described how ARC was born.

"We started many, many years ago," he said. "We bought noncore unprofitable mines…." These mines were later turned around, and some of the proceeds used to gain a foothold in the financial services industry.

"We started Ubuntu-Botho from some of the shares that we got from mining," he said.