Zarclear Holdings will seek to capitalise on its status as a permanent capital vehicle by investing in a portfolio of high quality investment opportunities that offer exceptional investment returns with a focus on the financial market infrastructure companies that would benefit from the listed governance structures, access to liquid and flexible capital, a broad shareholder base, sector expertise and networks that the Company’s management and board offer.
Investments are likely to be in regulated exchanges, trade repositories, clearing houses, securities depositories and investment and technology platforms within the financial markets sector in general and South Africa in particular. The intention is for the financial market infrastructure investments to be complimented and supported by a portfolio of investments of liquid investments that could be used as regulatory capital that is conducive to transparent valuation by Zarclear Holdings’s shareholders and that may be readily monetised should the Company elect to exit the investment.
There will be a preference for investing in a few, high conviction opportunities, where the Company is positioned to actively engage with management and add strategic value rather than passive investment stakes.
The bulk of Zarclear Holdings portfolio investments will comprise liquid and transparent investments. Should the company’s share price continue to trade at a substantial discount to NAV, the company will proactively implement strategies to reduce the discount including the return of capital to shareholders via share buybacks or otherwise.