South African private equity firm, Sanari Capital, has successfully raised R1.25 billion (about $65 million) for its growth fund. The firm aims to contribute to employment opportunities and economic growth within South Africa and across Africa.
The second closing for the Sanari 3S Growth Fund brings the firm closer to its goal of securing up to $100 million.
Notable financial institutions, including the Public Investment Corporation (PIC) and Alexforbes Investments, have joined as new investors in this round. The PIC manages capital for the Government Employees Pension Fund (GEPF), the largest pension fund in Africa.
Sanari Capital’s Founder and CEO, Samantha Pokroy, expressed gratitude for the capital injection from these respected financial institutions, emphasizing their shared commitment to achieving both financial and socio-economic objectives. The funding is expected to address economic imbalances, promote transformation, stimulate economic growth, create jobs, and deliver environmental and financial returns.
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The addition of PIC and Alexforbes complements Sanari Capital’s existing investor base, which includes the 27four Black Business Growth Fund, Telkom Retirement Fund, the Motor Industry Retirement Funds through the RisCura Manager Development Programme, and the National Fund for Municipal Workers (NFMW).
Moushmi Patel, Co-Founder, Partner, and Investment Director at Sanari, highlighted the fund’s transformative potential, allowing for investment in larger businesses and the expansion of their investment strategy focused on mid-market businesses. Patel also mentioned their continued support for Edulife Group, an affordable independent school group in South Africa.
Sanari Capital typically invests between R50 million and R250 million in well-established businesses positioned for growth through technology and market expansion. Ofentse Pelle, Partner and Investment Director, emphasized their commitment to digital and human empowerment, focusing on sectors with growth prospects and supporting local employers.
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In line with global trends, Sanari’s investment philosophy emphasizes technology, connectivity, IoT, data, and services. Additionally, the firm strategically invests in sectors such as education, healthcare, food security, and eco-friendly solutions. Sihle Gumede, Partner and Investment Director, mentioned their encouragement of businesses to adopt a broader perspective, considering both local and regional opportunities.
The capital invested by the fund ensures 100% black ownership in portfolio companies, aligning with Sanari Capital’s commitment to diversity. Samantha Watermeyer, Partner and Operations Director, emphasized the fund’s alignment with the 2X Challenge, a global initiative promoting women’s participation in international economic development and leadership.
Sanari Capital’s recent funding success marks a step towards enhancing employment opportunities and stimulating economic growth in South Africa and Africa. As the fund enters its next phase, it aims to contribute to a more prosperous and inclusive future.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard