SOUTH AFRICA – The Sanari 3S Growth Fund (Sanari 3SG) from Sanari Capital has just closed its first round of investment at R475 million (US$28 million).
To that end, the private equity firm looks primarily to South African firms with regional and global potential for investment.
Because of its expertise in investing in founder-run, owner-managed, and family-owned firms, Sanari 3SG will target mature and expanding companies in sectors that align with Sanari’s thematic emphasis areas.
The 3S Sustainable Scalable and Saleable Fund is the manager’s second fund overall, but the first to specifically target institutional investors.
“We are delighted to hit this milestone that recognises Sanari’s purpose-led approach, built on experience and our particular brand of inventive, disciplined investing that attracted significant commercial capital to the fund,” Samantha Pokroy, CEO of Sanari, said.
“We appreciate our investors’ conviction and support for our approach to growth-stage PE. We are excited to see pension funds stepping up to support the real economy and growth companies to achieve combined social and financial returns.”
Leading institutional investors such as the 27Four Black Business Growth Fund, RisCura (on behalf of various clients), and the National Fund for Municipal Workers have committed to Sanari 3SG at its first close, giving the company a strong chance of reaching its final close target of R1.2 billion to R1.7 billion (US$70–100 million).
“We are excited to back Sanari. The team’s focus on addressing social and economic challenges through growth investments is closely aligned with our objectives of generating strong returns for our investors and broader social impact within South Africa. We believe we have supported the right partner to achieve this,” Rory Ord, Head of Private Markets at 27four, commented.
Sanari Capital is headed and owned by a group of black women. The fund’s funding counts as 100% black ownership in its portfolio firms.
The fund is also eligible for the 2X Challenge, which encourages development finance institutions (DFIs) and private sector investors to pool resources to promote women’s economic empowerment and leadership throughout the world.
“We invest in companies that share our commitment to creating meaningful employment, contributing to inclusive economic growth without harming the environment and communities in the process,” Ofentse Pelle, Executive Director at Sanari, said.
“We live our values daily, and our diverse team offers a competitive advantage in a changing world where we must be relevant to win.”
The fund, which is now officially opening, has already deployed more than 30% of its first close committed money, with two investments warehoused before closure and a third investment in a fintech services company to be revealed shortly.
Sanari also has a sizable investment pipeline in healthcare, agribusiness, education, services, food, and technology.
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