What assets is ARC Funds Limited (ASX:ARC) selling?

ARC Funds has entered into non-binding agreements to dispose of its interests in two non-core assets: Merewether Capital Management and ARC Fund Operations.

How much capital will ARC Funds (ASX:ARC) raise from these disposals?

The total consideration for both transactions is $350,000 in cash. Merewether Capital Management is being sold for $100,000, while ARC Fund Operations is being sold for $250,000.

What is the strategic reason behind the ARC Funds (ASX:ARC) asset sale?

The board is undertaking these disposals to streamline the company’s portfolio by removing "non-core" assets. By selling these secondary interests, management aims to simplify the business structure and realise immediate cash value from assets that do not align with its primary long-term focus.

What are the payment terms for the sale of Merewether Capital Management?

The $100,000 sale price for Merewether Capital Management is split into two equal tranches. ARC Funds will receive $50,000 upon the signing of binding agreements and the remaining $50,000 upon the successful completion of the transaction.

How are the payment terms structured for ARC Fund Operations?

The $250,000 consideration for ARC Fund Operations is more front-weighted than the Merewether deal. ARC Funds is scheduled to receive $200,000 upon signing binding agreements, with a final $50,000 instalment paid once completion conditions are met.

Are there any specific liabilities ARC Funds (ASX:ARC) is retaining?

The sale of Merewether Capital Management is being conducted on a cash-free, debt-free basis but explicitly excludes employee entitlements. This means ARC may remain responsible for certain staff-related liabilities, which is a potential watch-out for investors assessing the net financial impact.

ARC Funds divests non-core assets for $350,000

Written by Liezl GambePublished Mar. 27 2026Last Updated Mar. 27 2026

ARC Funds (ASX:ARC) has entered into non-binding term sheets for the strategic disposal of two non-core assets, Merewether Capital Management and ARC Fund Operations.

The combined transactions are set to generate a total consideration of $350,000, representing a focused effort by the board to streamline the company’s portfolio and realise value from secondary interests.

The first component of the divestment involves the sale of ARC’s 72% stake in Merewether Capital Management, consisting of 771,880 fully paid ordinary shares.

The interest is being offloaded for $100,000 in cash, structured as an initial $50,000 payment upon the signing of binding agreements and a final $50,000 instalment at completion.

The deal is being conducted on a typical cash-free, debt-free basis, though it notably excludes employee entitlements.

The company is disposing of its interest in ARC Fund Operations for $250,000 cash.

The payment terms for this second transaction are more front-weighted, with $200,000 due on the execution of binding agreements and the remaining $50,000 payable upon completion.

Like the Merewether sale, this transaction is being undertaken on a debt-free basis with customary warranties in place.

Both disposals are subject to standard completion conditions and are expected to be finalised on or before May 1.