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Sanari 3S Growth Fund Reaches R1.25bn in Second Close

Anna Lyudvig
Oct. 5, 2023, 12:38 p.m.
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Sanari Capital, a women-led and majority Black- and women-owned South African private equity firm, has raised R1.25bn (approximately $65m) at the second close for its Sanari 3S Growth Fund, as the firm edges closer to its goal of reaching a final close equivalent of up to $100m.

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Sanari Capital, a women-led and majority Black- and women-owned South African private equity firm, has raised R1.25bn (approximately $65m) at the second close for its Sanari 3S Growth Fund, as the firm edges closer to its goal of reaching a final close equivalent of up to $100m.

New investors in this closing include the Public Investment Corporation (PIC), the largest asset manager on the African continent, and Alexforbes Investments, South Africa's leading and largest provider of multi-manager investment portfolios and related investment services in Southern Africa, with R450bn in assets under management and administration. 

Samantha Pokroy, Sanari Capital's CEO, said: "We are delighted to have raised capital from such highly regarded financial institutions, both of which share our commitment to achieving a balance between financial and socio-economic benefits. This funding will play a pivotal role in addressing structural economic imbalances, promoting transformation, fostering economic growth, creating jobs, and delivering both environmental and financial returns."

The addition of the PIC and Alexforbes complements Sanari Capital's existing investor base, which includes the 27four Black Business Growth Fund, Telkom Retirement Fund and the Motor Industry Retirement Funds through the RisCura Manager Development Programme, and National Fund for Municipal Workers (NFMW). 

"We are grateful for our investors' continued support and the additional top-up allocation provided by NFMW, underscoring their confidence in our portfolio and pipeline,” Pokroy said.

Sanari Capital invests between R50m and R250m in well-established businesses at an inflection point, driven by technology, innovation, thematic or sectoral growth drivers, and new markets. 

Moushmi Patel, Executive Director at Sanari, said: "This fund equips us with the financial capacity to invest in larger businesses than was previously possible, allowing us to extend the reach of our work with founder-run, owner-managed, and family-owned businesses across the mid-market.” 

“Additionally, we can back our investee companies for longer through their expansion and scaling. For example, we expect to continue backing our investment in Edulife Group, an affordable quality independent schools group in South Africa, where we have already grown the learner base from 1,000 to 3,000 students and a pipeline to double the business in the near term."

Sanari's investment philosophy is centred on themes aligned with the ever-evolving global landscape, focusing on technology, a more interconnected digital world, IoT, data, and services.

Moreover, in line with the growing global consciousness of social responsibility, Sanari strategically invests in sectors such as education, healthcare, food security, and eco-friendly solutions. 

Sanari’s Executive Director Sihle Gumede, said: “One of our core strategic objectives is to encourage businesses to broaden their horizons, a concept we refer to as 'local to regional, Africa to the world.”

The capital invested by the fund qualifies as 100% black ownership in underlying portfolio companies, offering benefits over and above the firm's growth capital and value-adding support. 

Closely tied to the firm's diverse composition and commitment to being relevant players in the African market and on a global platform, the fund also aligns with the criteria for the 2X Challenge, promoting the mobilisation of resources to advance women's participation in international economic development and leadership.

 

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