African Rainbow Capital (ARC), a black owned and controlled investment company that forms part of the Patrice Motsepe stable, has invested in a 29.9% share of CMB International, the listed holding company of independent investment banking and advisory firm Bravura.

The value of the investment is R120m (R60m of equity and R60m preference share facility).

“Our investment in Bravura, through CMB International, supports our commitment to enable equity-based transformation in the property and financial services industries in Africa and South Africa, benefiting the economy as a whole,” ARC said.

“This investment forms part of our strategy to focus our initial portfolio on both financial services and compelling private equity placements to become a fully integrated diversified financial services business.”

“The capital we provide will enable Bravura to grow both organically and acquisitively to deliver exceptional returns on equity.”

CMB International and its subsidiaries provide corporate finance, structured solutions and property investment services to clients in Southern Africa and Australia.

The company is dual-listed on the Stock Exchange of Mauritius and the Namibian Stock Exchange.

CMB International’s shareholders include Titan Group, which continues to hold 14%, Capital Markets Brokers, which owns 44%, and some other smaller shareholders

The capital injection received through the ARC investment will accelerate and underpin CMB International’s growth strategy – which is to diversify its business, and grow exponentially through acquisitions.

CBM International said: “The ARC investment provides a strong transaction pipeline and access to capital to grow the business through acquisitions as we further diversify into non-bank financial services, for example alternative investment management, and trading and brokerage services.”

“This growth will be complementary to our core corporate finance, structured solutions and property investment and advisory services.”

“Bravura will not only provide corporate finance and structured solutions services as required across the group’s investments, but can also become the platform for the smaller financial services investments that ARC plans to make.”