African Rainbow Capital (ARC), the investment holding company backed by Patrice Motsepe, Africa’s first Black billionaire, has reached another milestone by exceeding a net asset value (NAV) of $1.3 billion in the fiscal year ending June 30, 2026.

The South African-based private equity and investment firm, owned entirely by Motsepe’s Ubuntu-Botho Investments (UBI), saw its NAV jump by R3.18 billion ($192.3 million), pushing total assets to R21.8 billion ($1.32 billion). The result demonstrates the resilience of a diversified portfolio, with strength in asset management, debt consolidation, agriculture and logistics offsetting pressure elsewhere.

This 3.1% rise in NAV came despite the investment company’s intrinsic portfolio value decreasing by 8 % from R22.6 billion ($1.37 billion) to R20.8 billion ($1.26 billion) during the year. The decline was primarily attributable to the R1.24 billion ($75.01 million) impact of the ARC Investments share unbundling and the recognition of an R821 million ($49.69 million) deferred tax liability following the re-domiciliation. Excluding these items, the portfolio generated underlying value growth of approximately 1.1%.

ARC’s strategic growth path

ARC, established in 2015 as a subsidiary of UBI, has rapidly positioned itself as a leader in African investment. Its core mission remains identifying high-potential opportunities in South Africa and across the continent, focusing on industries traditionally underrepresented by Black investors.

At the helm is Patrice Motsepe, a pioneer in African business with a broader vision to develop Black-owned capital. With a 27% indirect stake in ARC, Motsepe’s leadership has driven the company’s impressive growth. His $3.4 billion net worth places him at 1,210th on Forbes’ global rich list, further cementing his influence in Africa’s investment landscape.

ARC’s investment strategy includes stakes in high-growth and mature businesses like GoTyme, one of South Africa’s fastest-growing digital banks, which eyes 30 million customers by 2036, and Rain, a mobile network focused on data services. These investments have been central to ARC’s rapid expansion and ability to deliver consistent returns, with both now representing 94.6% of portfolio value.

Patrice Motsepe’s ARC defies economic hurdles

ARC remains cautious despite its success, as South Africa struggles with high interest rates, unemployment, and currency volatility, which could affect some of its portfolio companies. However, the firm’s diverse holdings help mitigate these risks, keeping it resilient.

Other key investments, including Alexander Forbes, Sanlam Third Party Asset Management, Linebooker and Empowerfin, also made good progress. The Group’s cash and funding position improved meaningfully. Sanlam’s acquisition of a 25% interest in the Diversified portfolio deepened an important strategic partnership and improved financial flexibility. The portfolio received R908 million in dividends during the year, and ARC Investments paid its maiden dividend after year-end. With 59% of the portfolio now dividend-paying, the foundations are being laid for more sustainable distributions over time.

Motsepe’s vision of empowering African economies, rooted in his founding of Ubuntu-Botho Investments in 2004, drives ARC’s success. His leadership positions ARC as a key player in African business, challenging global competition and shaping the continent’s investment future.