Patrice Motsepe a South African billionaire has acquires 25% shareholding in specialist financial services firm Capital Legacy for an undisclosed amount. Motsepe acquired the stakes through his empowerment investment holding company African Rainbow Capital (ARC).
ARC, with this transaction, has completed its existing financial services investments with Capital Legacy and Companies, an estate planning firm. As a result, this deal facilitates synergistic opportunities between Capital Legacy and companies in which ARC is invested, according to a statement.
Since 2012, it is worthy of note that Capital Legacy has been in business. Accordingly, It has drafted more than 200 000 wills since inception. The firm currently assists more than 5000 individuals per month with the drafting of their wills.
Capital Legacy founder and CEO, Alex Simeonides said CLC came to a point where it needed a big brother to provide it with BEE credentials. Because of this, they needed a partner with the means to help fund their growth. On top of that ARC brings massive credibility.
CLC considers ARC stable to provide it funding
He said Capital Legacy met with a few suitors before deciding on ARC, among other reasons because of its hands-off approach. It took about nine months to sort out the deal.
“For us the next step now that we are part of the ARC stable is to see how we can take our fiduciary services into other ventures as well. For instance, how we could help TymeBank [of which ARC is a shareholder] clients to have their wills done,” said Simeonides.
“From my personal point of view, the most important aspect is that we now have a credible institution with proper backup behind us to show we can deliver on promises we make.”
In addition, according to ARC Co-CEO, Johan van der Merwe, CLC “fits neatly into the eco-system of financial services businesses that we assemble. These businesses would leverage from one another and create synergies for other businesses within our holistic approach.”