Sanari Capital's New Growth Fund's Second Closure Brings in $65 Million

Sanari Capital, a South African private equity firm led by women and primarily owned by Black and women investors, has successfully raised ZAR1.25 billion (US$65 million) in the second close of its growth fund.

This fund is aimed at driving employment opportunities and fostering economic growth in Africa.

The firm typically invests between ZAR50 million (US$2.6 million) and ZAR250 million (US$13 million) in established businesses experiencing a turning point, driven by technology, innovation, market growth, or new market entries.

Their investment strategy revolves around global themes like technology, an increasingly connected digital world, IoT, data, and services, with a strategic focus on sectors such as education, healthcare, food security, and eco-friendly solutions.

The Sanari 3S Growth Fund, currently at US$65 million, is striving for a final close of up to $100 million.

Sanari Capital secured the investment from major financial institutions, including the Public Investment Corporation (PIC) and Alexforbes Investments.

PIC, the largest asset manager in Africa, manages capital for the Government Employees Pension Fund (GEPF), the continent's largest pension fund.

Sanari Capital CEO Samantha Pokroy expressed enthusiasm for this funding. “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 funding will enable Sanari to invest in larger businesses and extend support to founder-run, owner-managed, and family-owned businesses in the mid-market.

Additionally, the capital investment will qualify as 100% black ownership in portfolio companies, aligning with the firm's commitment to diversity and its efforts to advance women's participation in economic development and leadership through the 2X Challenge.

(Tom Jackson / Disrupt Africa)