July 2004 -  AIL acquires a stake in Fundcorp

Situation

• AIL is a privately owned investment holding company incorporated in New Zealand
• Fundcorp Holdings Pty Ltd (“Fundcorp”) is a newly formed special purpose consumer finance company targeting micro and small ticket loans in Australia and New Zealand.

Approach

• ARC Associates (“ARC”) conducted an analysis of the effect on shareholder dilution of potential further shareholders in Fundcorp for AIL.
• ARC conducted a full investigation of the returns of the investment and the associated risks by reviewing the business plan and projections.
• ARC was actively involved in the negotiation of the terms of the transaction and in funding alternatives for the investment including the coupon.
• Upon the review of the returns analysis

Transaction

• The transaction was completed on 30 July 2004