In its second close of new growth fund, SA’s Sanari Capital raised $65 M

The second close of Sanari Capital’s growth fund, which aims to boost employment opportunities and promote economic growth throughout Africa, raised ZAR1.25 billion (US $65 million). Sanari Capital is a women-led, majority Black and women-owned South African private equity firm.

Sanari Capital makes investments in well-established companies at inflection points, driven by technology, innovation, thematic or sectoral growth drivers, and new markets, for amounts ranging from ZAR50 million (US $2.6 million) to ZAR250 million (US $13 million).

The investment philosophy of the company is centred on themes that are in line with the constantly changing global landscape, with a particular emphasis on technology, a more connected digital world, IoT, data, and services. Additionally, it strategically invests in industries like eco-friendly products, healthcare, food security, and education.

With a recent second close of US $65 million, the Sanari 3S Growth Fund is aiming for a final close of up to $100 million.

With R450 billion in assets under management and administration, Alexforbes Investments, South Africa’s leading and largest provider of multi-manager investment portfolios and related investment services in Southern Africa, and the Public Investment Corporation (PIC), the continent’s largest asset manager, are among the new investors in this closing. The Government Employees Pension Fund (GEPF), the biggest pension fund in Africa, is managed by the PIC.

“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,” said Sanari Capital CEO Samantha Pokroy.

According to Moushmi Patel, executive director of Sanari, the new fund gave Sanari the financial ability to invest in larger companies than was previously feasible, enabling it to expand the scope of its 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,” he said.

In addition to the benefits provided by the company’s growth capital and value-adding support, the capital invested by the fund qualifies as 100% black ownership in the underlying portfolio companies. The fund also aligns with the criteria for the 2X Challenge, which encourages the mobilization of resources to advance women’s participation in international economic development and leadership. This is closely related to the firm’s diverse composition and commitment to being relevant players in the African market and on a global platform.