The Company effectively invests through its interest in the ARC Fund. By investing in a broad range of sectors and through a variety of unlisted and listed entities, the ARC Fund generally seeks to gain exposure to growth and early-maturity stage businesses in which management teams are appropriately incentivised. The ARC Fund primarily acquires significant minority equity interests in established and start-up businesses that meet one or more of the following criteria:
Where the ARC Fund holds the majority or significant minority interests in portfolio companies, the General Partner, where appropriate, seeks to provide broad strategic guidance through representation and participation on the board of directors of such companies.
The ARC Fund does not have a target size and may be geared, as appropriate, to meet its investment strategy.
ARC Investments’ medium- to long-term objective is to grow its Intrinsic Net Asset Value (INAV) by at least 16% per annum, net of fees. Each investment opportunity is expected to achieve this objective, suitably adjusted for specific risk, on a standalone basis.
In terms of our Financial Services approach, we believe that the ARC team has extensive experience in financial services to evaluate and pursue investment opportunities. Investments are made considering the stand-alone and synergistic potential across all the businesses in the Financial Services portfolio.
In terms of our Diversified Investments approach, we evaluate investment opportunities in conjunction with our partners who are sector experts (i.e. Telecoms, Property, Business Process Outsourcing). Investments are made with stand-alone and synergistic potential in mind within the sub-category (i.e. Property or Agri). The businesses in the Diversified Investments portfolio offer significant client pool value for the Financial Services businesses.