Sanari Capital, a pioneering South African investment firm led by women and majority Black-owned, has successfully closed its Sanari 3S Growth Fund at approximately R1.5 billion ($80 million). This milestone marks a significant step in advancing transformative investments across Africa, positioning Sanari Capital as a key player in the continent’s evolving private equity landscape.

Sanari Capital specializes in mid-market investments, targeting founder-run, owner-managed, and family-owned businesses at critical inflection points. These companies typically exhibit strong technology, innovation, and thematic or sectoral growth drivers. The firm’s investment strategy includes allocating up to R250 million per business, with a focus on scalability and geographic expansion. Currently, about 60% of its portfolio companies’ revenues are derived from hard-currency markets, reflecting their export-oriented business models and presence beyond South Africa.

“We are continuously inspired by the compelling technology and innovation of South African businesses, which are in high demand beyond our borders,” said Moushmi Patel, Executive Director at Sanari Capital.

The fund’s portfolio includes four companies that exemplify its transformative ambitions:

• Edulife Group: An affordable schooling group addressing access to quality education.
• LightWare LiDAR: A producer of the world’s smallest and lightest LiDAR sensors, serving advanced technology markets.
• iiDENTIFii: Africa’s leading enterprise identity verification (IDV) company, driving digital security and trust.
• Energenic Holdings: A Pan-African energy solutions provider supporting sustainable energy transitions.

These investments align with Sanari Capital’s “3S” approach, which emphasizes building businesses that are sustainable, scalable, and saleable. “We aim to unlock business potential through a combination of digital and human enablement,” noted Ofentse Pelle, Executive Director at Sanari Capital.

Sanari Capital’s investment philosophy seeks to drive diversity and economic transformation while achieving financial, social, and environmental returns. “The funding will play a pivotal role in promoting diversity, fostering economic growth, creating jobs, and delivering impactful results,” stated Sihle Gumede, Sanari Executive Director.

The fund’s investors include prominent South African institutions such as the Public Investment Corporation (PIC), Alexforbes Investments, the 27four Black Business Growth Fund, Telkom Retirement Fund, and the Motor Industry Retirement Funds through RisCura, as well as the National Fund for Municipal Workers. New investors have joined this coalition, underlining the confidence in Sanari’s strategic vision and investment capabilities.

Sanari Capital CEO Samantha Pokroy described the closing of the fund as a validation of the firm’s approach. “We are excited about this milestone and the vote of confidence in Sanari’s investment programme and strategy. With four investments already concluded and an exciting pipeline of opportunities covering all our investment themes, this capital enables the team to execute at pace. We are confident we will continue to see a positive impact, both on the ground and in the fund’s returns,” she said.

Sanari Capital’s commitment to transforming the private equity space and driving meaningful economic change in Africa positions it as a standout player in the region. As the firm continues to execute its investment strategy, it is poised to leave an indelible mark on the continent’s economic landscape, showcasing the potential of purpose-driven private equity investments.