ARC Capital Holdings Ltd (ARCHu)

ARC Capital Holdings Limited specializes in late stage, emerging growth, buy-outs, consolidation, pre-IPO private equity investments, and mezzanine securities investments. It may invest in equity, quasi-equity, or debt instruments. The fund seeks to invest in the retail, consumer goods, and consumer service sectors. It prefers to invest in regional hypermarkets and supermarkets. The fund prefers to invest in consumer brands that are dominant in their niche or in their geographic region. It also prefers to invest in retail chains specializing in certain categories in China such as auto, baby products, health services, and other such sectors. The fund also prefers to invest in retail property assets and retail and consumer service providers such as in consumer finance, logistics, marketing and communications, and technology. It prefers to invest specialty retail chains, consumer products brand owners, including manufacturers, consumer services, including travel, media, education, property developments with a focus on retailing and consumer services, distribution companies focused on a sizeable retailing niche, service companies which enable or support a critical aspect of retailing, automotive accessories and services, consumer products distribution, and the dairy sector. The fund typically invests in Greater China and also in neighboring Asian countries with at least 70% of the gross asset value invested in China and up to a maximum of 30% of the gross asset value invested in Greater China and other countries in Asia. It primarily invests up to $100 million in equity and mezzanine financing, although in transactions in excess of $50 million, the fund prefers to lead a consortium of several co-investors. Other than in exceptional cases, and in the case of service companies which support retailing, it does not invest in transactions less than $15 million. The fund typically invests in companies with annual sales in the previous or current year in the range of $100 million or more. It seeks to own a controlling interest in its investments by owning a direct or indirect controlling participating interest in the investments; and invests in companies with an operating track record of three years or more. The fund usually does not finance companies which are startups; are conglomerates with unrelated businesses, except in a spinoff; are engaged in heavy industry; are in a turnaround situation; or have negative operating cash flow. It may also provide follow-on capital which may be in the form of mezzanine debt or equity, or long term debt from commercial banks or development finance institutions. The fund may also invest up to but not exceeding 20% of its net asset value.