Billionaire Patrice Motsepe, along with two former Sanlam veterans, have officially launched a new money management firm called African Rainbow Capital (ARC).

Motsepe, who is chairperson of ARC, together with joint chief executive officers Dr Johan van Zyl and Johan van der Merwe, unveiled the formation of ARC at an event in Hyde Park in Johannesburg.

ARC’s van Zyl was the former chief executive officer of Sanlam while van der Merwe previously headed up Sanlam Investments. Motsepe is a South African mining magnate and founder and executive chairperson of African Rainbow Minerals.

The newly established ARC investment firm is set to invest in a range of sectors from health management to property in South Africa and Africa.

Van Zyl said that the launch of the firm comes at a tough time for the local economy but he explained that falling prices create opportunities for investors.

“You can’t make money if you can’t take risk,” van Zyl said in a panel discussion.

"We've recruited some great people, some people who make me feel like I'm 30 again. To work with people who have stars in their eyes, that's what this is really about,” he added.

Meanwhile, van der Merwe said that ARC is “committed for the long term”.

"We're not here for a quick buck,” said van der Merwe. "We want to be a good corporate citizen."

He added: "If there are no risks, then there's no opportunities.”

Motsepe, who spoke of his family’s background in entrepreneurship during the panel discussion, said that South Africa has produced “exceptional black entrepreneurs” and that more are set to emerge.

“The entrepreneurs will come through. They’ve been there in the past; they’ll be there in the future,” he said.

“I also like the possibility of black and white partnerships,” Motsepe added.

While ARC officially launched on Thursday, the firm has already been active in certain deals.

Last month, ARC acquired an 18.1% stake in telecommunications company Metrofibre Networx. ARC is a subsidiary of Ubuntu-Botho Investments (UBI), a broad-based black empowerment investment holding company that is Sanlam’s empowerment partner.