ARC Funds (ASX:ARC) announced a significant step forward in its strategic expansion by acquiring a 30% minority equity stake in ausbiz Capital.
The transaction involves a total investment of $1 million, structured across three tranches, with the first $670,000 allocated to secure a 22.3% interest.
Ausbiz Capital, a new entity under ausbiz Group, aims to launch in November, providing a comprehensive suite of financial products to over 110,000 ausbiz Group subscribers.
These offerings include term deposits, managed funds, and digital investor relations services via a dedicated web and mobile platform.
Scott Beeton, Managing Director of ARC Funds, emphasised the potential of the partnership, stating, "This strategic investment with ausbiz Capital is a very exciting milestone for ARC in its quest to rapidly expand its business."
Similarly, Simon Van Es, Managing Director of ausbiz Capital, expressed enthusiasm for the collaboration, "After careful evaluation of several strategic partners, we are excited to collaborate with ARC Funds."
The move marks ARC's commitment to diversifying its service offering, aiming to provide comprehensive investment solutions alongside its existing licensing and administration services.
ARC Funds is an Australia-based investment management company. The company is developing multi-affiliate boutique funds management platform. It invests in and support the emerging funds management in Australia.
At the time of reporting, ARC Funds' share price was $0.088.