ARC Funds Limited revealed this month it had executed a binding agreement with ausbiz Group Pty Ltd to acquire a minority 30% equity interest in ausbiz Capital Pty Ltd, currently a 100% subsidiary of ausbiz Group.
ausbiz is an independent streaming platform that covers the financial market. The founders and major shareholders are Kylie Merritt and David Koch (pictured above).
Merritt recently spruiked ausbiz to advertisers at Independent’s Day where she detailed how it provides the only TV service covering the local sharemarket. ausbiz interviews 25 market experts each day across five hours of live content daily. It also publishes two newsletters and two podcasts daily.
About ausbiz Capital
ausbiz Capital, part of ausbiz Group, is a new business established to offer what is described as “high-quality financial products and services” to ausbiz Group’s subscriber base. ausbiz has reported that subscriber base currently exceeds 110,000. This new business is led by Simon van Es and plans to launch initial products in November 2024. Simon van Es Founder is the founder of Finance News Network (FNN), a financial news syndicator that supplied business news content to financial institutions. He was recently COO of TZ Limited.
The new business will initially offer ausbiz Group subscribers direct access, via its proprietary web & mobile platform, to a range of financial products including:
• Term deposits & high-interest savings accounts
• Capital Raisings
• Alternative Investments with a core focus on income
• Model Portfolio and Trading Services
• Managed Funds
• Digital Investor Relations Services and Company Promotion (via ausbiz TV)
The initial agreement between ausbiz Group and ausbiz Capital is an exclusive three-vear term where ausbiz Group will provide ausbiz Capital’s marketing & promotion services to Ausbiz Group’s existing database.
The board of ausbiz Capital will comprise of Simon Van Es (managing director), Wayne Mo and Scott Beeton. All board members have a track record in creating, building and running similar financial services businesses.
The ausbiz team when it launched in 2020
Key financial terms
ARC will initially invest $670k for a circa 22.3% interest in ausbiz Capital in the first tranche.
ARC will then make a further commitment of $330k, which will be divided equally across another two investment tranches, with the second tranche scheduled for around January 2025 and the third and final tranche scheduled for around April 2025. On completion of the final investment, ARC will own 30% of ausbiz Capital for $1 million. This transaction is governed by a subscription agreement and an ongoing shareholders agreement containing standard commercial terms.
Why ARC is investing $1m in Ausbiz Capital
ARC Funds explained its current business model is the provision of Australian Financial Services Licensing, Fund Trustee and Fund Administration services to Investment Managers.
“Our limitation to date has been the ability to market, promote and distribute funds on a broad scale. With this strategic investment by ARC Funds into ausbiz Capital we now have the opportunity to be a strategic investor in a business that provides true end-to-end solution for Investment Managers.
“This investment is the first step of our expanded strategy where we are currently examining new opportunities to expand our overall business with an aim to empower all Australians with access to investment opportunities across a range of asset classes and investment strategies.”
Scott Beeton, ARC Funds managing director, added: “This strategic investment with ausbiz Capital is a very exciting milestone for ARC in its quest to rapidly expand its business. I am also very excited to work again with Simon and to assist him to develop ausbiz Capital into a leading financial services firm for self-directed investors.”
Kylie Merritt, co-founder and managing director ausbiz Group said: “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.”
Simon Van Es, managing director of ausbiz Capital, added: “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. This partnership represents a key milestone in establishing a business designed to bring value and opportunity to self-directed investors.”
See also: Kochie and Kylie flick the switch on ausbiz streaming service