ARC Funds acquires 30% of auzbiz Capital as latest direct-to-investor marketing venture

Aspiring financial services provider ARC Funds (ASX:ARC) is set to get a lot more public exposure to new investors having acquired a 30% equity stake in ausbiz Capital, the venture launched by financial media company ausbiz Group – operator of the ausbiz news channel. 

This strategic partnership marks a significant development for ARC Funds as it seeks to expand its offerings in the investment management space, providing a full-service solution for self-directed investors.

Under the terms of the deal, ARC will initially invest $670,000 for a 22.3% interest in auzbiz Capital. Two further investment tranches of $165,000 each will follow in 2025, ultimately bringing ARC’s total stake to 30% for $1 million. Prior to this investment, ausbiz Group owned 100% of ausbiz Capital. 

Making the investment more significant is that ARC trades on the ASX with a market cap of $3.3 million, meaning this venture will consume almost one-third of the Company that reported $92k revenue in FY24. 

auzBiz Capital, led by Simon Van Es, aims to offer a range of financial services tailored to the subscriber base of its parent company, ausbiz Group which currently boasts over 110,000 subscribers. These subscribers will be marketed financial products such as term deposits, high-interest savings accounts, capital raising opportunities, and alternative investments. Additionally, ausbiz Capital will provide managed funds, trading services, and digital investor relations. 

The venture will be supported by a board comprising Van Es, Wayne Mo, and Scott Beeton, all of whom bring extensive experience in financial services.

This is not the first time Simon Van Es and Scott Beeton, Managing Director of ARC Funds, have worked together. Both were previously involved in the leadership of Finance News Network, a competitor to ausbiz in the financial media space. During that time, Finance News Network was owned by Sequoia Group (ASX: SEQ), where Beeton was at the helm. 

“After careful evaluation of several strategic partners, we are excited to collaborate with ARC Funds to bring this unique business venture to life through ausBiz Capital,” said Van Es. 

“This partnership represents a key milestone in establishing a business designed to bring value and opportunity to self-directed investors.”

Speaking about the partnership, Kylie Merritt, Founder and Managing Director of ausbiz Group, highlighted the synergy between the two companies. “Through its media business, the ausbiz Group has built a highly engaged subscriber base. 

“We welcome ARC’s investment into the new ausBiz Capital business as we continue to find innovative and effective ways to connect our investor base with quality ideas and opportunities.”

ARC’s presence in the strategic partnership will kick off with an exclusive three-year marketing and promotion agreement between ausbiz Group and ausBiz Capital ensures that the latter will have access to ausbiz Group’s subscriber base that has been built up over several years.

With initial product offerings set to launch in November 2024, ausbiz Capital is poised to capitalise on the growing demand for accessible, diversified financial products through this new direct-to-investor marketing that will rival the likes of Finance News Network, Stockhead and HotCopper marketing arms.