ARC Funds Raises $1.4M, Acquires 63.49% of $550M Term Deposit Platform

Strategic Acquisition Expands ARC Funds’ Footprint

ARC Funds Limited (ASX: ARC) has taken a significant step forward in its growth strategy by acquiring a 63.49% stake in The Term Deposit Shop Pty Ltd (TTDS), alongside full ownership of TTDS Holdings Pty Ltd. This move positions ARC as the major shareholder in a platform that has already established itself as a key player in the Australian online cash investment market.

The acquisition was supported by a $600,000 equity raise through a share placement priced at $0.115 per share, complemented by an $800,000 private debt facility. This combined capital injection is expected to provide the necessary resources to scale the platform’s operations and enhance its service offerings.

Leveraging a Robust Online Investment Platform

The Term Deposit Shop operates an online platform designed to simplify cash investments and facilitate seamless switching between banks. With over $550 million in funds under management, the platform primarily serves financial planners and is approved on more than 100 Australian Financial Services Licensees' product lists. It supports transactions with over 10 Australian banks, offering investors access to competitive interest rates and transparent product information.

ARC’s Managing Director, Scott Beeton, has joined the board of TTDS, signaling a hands-on approach to integrating the platform into ARC’s broader investment ecosystem. The company believes that with further investment, TTDS can significantly grow its funds under management and operating cash flows, aligning with ARC’s mission to empower Australians with accessible, diversified investment opportunities.

Implications for Investors and Market Position

This strategic investment enhances ARC’s ability to serve both self-directed investors and professional advisors by expanding its product suite and digital capabilities. The move reflects a broader industry trend towards digital platforms that offer streamlined, cost-effective access to fixed income and cash investment products.

While the acquisition and capital raise mark important milestones, the actual impact on ARC’s financial performance will depend on how effectively the company can scale TTDS’s platform and convert its sizable funds under management into sustainable revenue streams. Investors will be watching closely for updates on integration progress and operational metrics in the coming quarters.