African Rainbow Capital acquires stake in Colourfield Liability Solutions
African Rainbow Capital (ARC) has acquired a minority stake in Colourfield Liability Solutions for an undisclosed amount, enhancing ARC’s vision of becoming a fully-fledged financial services company and delivering exceptional returns on equity.
Colourfield was co-founded by Nick Sennett, Costa Economou and Shaun Levitan in 2010 and today is the largest investment manager of third-party goals-based investment solutions. Colourfield’s intention is to use the opportunity to leverage off ARC’s strategic focus and strong leadership team. ARC’s shareholding will allow Colourfield to maintain its independence which it submits is essential for best-of-breed solution delivery to its clients.
Patrice Motsepe, Chairman and founder of ARC says: “Colourfield have a key asset management role to play in this partnership in terms of the innovation and technology they can provide. ARC is a newly formed, fully black-owned and controlled investment company focusing on the South African and African financial services industry. We are looking to build a “best of breed” financial services business and ultimately, benefit our stakeholders and positively contribute to the lives of South Africans.”
Costa Economou, CEO of Colourfield says the investment will be mutually beneficial, with significant potential. “We are extremely excited by the synergy an ARC shareholding in our business will create. The involvement of ARC, an extremely strong BEE partner, will bring strategic focus, a strong leadership team, new and exciting opportunities and the shareholding of a broad-based trust. Our agreement with ARC is the perfect way for us to achieve the growth we want without compromising our independence.”
Colourfield prides itself on challenging traditional “one-size-fits-all’ approach to investment by creating tailored investment solutions that focus on outperformance of liabilities or goals, rather than the industry standard approach of focusing on market benchmarks.