ARA Group is investigating how confidential company information was circulated to prospective investors in an unauthorised investment pitch linked to the Australian employee-owned business.
The material invited commitments of at least $500,000 to a fund managed by boutique firm JBS Investments and described ARA as a “highly profitable, dividend-paying and resilient business”. ARA said it was unaware of the fundraising effort until it was brought to the company’s attention.
ARA employs more than 5,000 people across Australia and New Zealand and generated $1.6 billion in revenue in the last financial year. Founded in 2001, it has expanded through about 120 acquisitions, including 18 during the 2026 financial year.
The investment memorandum, dated October 10, included budgets and forecasts described as confidential company information. It suggested the fund would eventually seek to sell its investment to a private equity firm or strategic trade buyer, with leadership succession forming part of that process.
The document opened with a letter carrying the name of John Sampson, an ARA board member who is also chief investment officer of JBS Investments.
It was sent in a bulk email to clients of Metro Commercial Property Group, a property investment firm in Double Bay, on October 15. The email said ARA had received a valuation after being approached about a potential takeover which did not proceed.
Rivkin, a financial services firm, was named as handling applications, with a deadline of October 29 for signed applications. However, a Rivkin spokesperson said the information memorandum had been sent “prematurely” and that no applications or client funds had been received.
“Rivkin will be communicating with all recipients about the premature disclosure of the IM. Rivkin has not issued a final IM,” the spokesperson said.
The email also identified the possible departure of ARA founder and chief executive Edward Federman as a potential risk, stating: “Ed Federman has led ARA for 25 years, and the timing of his succession is uncertain.”
ARA denies sale and succession plans
ARA said the references to a future sale and leadership transition had not been authorised. The company is majority employee-owned, with about 480 employees collectively holding roughly half its shares, while Mr Federman remains its largest shareholder.
“ARA is aware of investment material bearing the name of a current ARA board director, which has been circulated to prospective investors,” a company spokesperson said.
“ARA was not aware of, and did not authorise, this fund or its marketing material.
“The board will investigate the origins of this material and how it came to be circulated, along with the unauthorised use of company information.”
The spokesperson added that ARA had not agreed to sell or issue shares to any investment fund. “The company is not for sale, and Mr Federman has no plans to step down, and we remain committed to employee ownership,” they said.
Mr Sampson declined to comment publicly. There is no suggestion that JBS Investments or Mr Sampson personally were involved in the unauthorised or premature distribution of the document, with Mr Sampson’s name appearing because it was included on the introductory letter.
Rivkin said it had been working with JBS Investments and Mr Sampson on an investment opportunity which remained subject to a final information memorandum and approval from the ARA board.
The firm described its relationship with JBS Investments and Mr Sampson as “long-standing”, saying it had “completed a number of successful investments over many years” with them.
