The 2019/2020 financial year-end is rapidly approaching and hopefully the holidays gave us all time to recover from a challenging year and prepare for the new decade starting in 2020. During this time of reflection our financial objectives are usually front of mind, with critical questions around how to generate investment returns in a low-growth economic environment, how to manage currency risks and increasingly in this day and age, how do we do good whilst making a profit?
In the past year, Sanari Capital has worked hard to answer some of these questions and we would like to share with you some news on our investments and some potential considerations for your portfolio to be implemented early in 2020.
Sanari Capital is a value-adding private equity firm that invests in South African companies with local, regional and global growth prospects. You can access our investment programme and the attractive private equity asset class via a Section 12J tax-deductible investment that has been approved by some of South Africa’s largest and most well-regarded wealth managers.
Our Sanari 12J Fund I is closed and fully allocated (you can view our broader portfolio here) but Sanari 12J Fund II is open for capital raising ahead of the 29 February 2020 tax deadline. The current Fund II portfolio includes our investment in Edulife Group and 60% of our targeted fund has been allocated to investments currently underway and in our pipeline. Please see below for insights into upcoming investments.
WHY IS THIS A LAST CHANCE OPPORTUNITY? Sanari Capital is in the process of raising a larger institutional private equity fund which is expected to close in the latter part of 2020, meaning that our fund minimum investment will increase dramatically and likely out of range for most individual investors. We hope you will join us in closing out our second and last 12J fund.
Given that the tax year end of 28 February 2020 approaches so quickly, we advise investors to obtain information on their options early so as to avoid the rush and analysis paralysis that is customary around tax year-end. This year in particular you only have R2.5 million per non-corporate investor to allocate to 12J so make sure it counts!! See the Regulatory Q&A below.
In October Sanari completed its latest investment with a R28 million investment in education company, Edulife Group. Edulife is the largest independent school group in the Free State, with more than 20 years’ operating history and over 1200 learners. Edulife has just opened its fourth school now in January 2020. You can read more below on this exciting investment opportunity which provides both highly attractive financial and social investment returns. THIS JUST IN: Edulife’s Academy of Excellence achieved a 100% matric pass rate for 2019! Not only that but 60% of the learners achieved university entrance level grades. We are so proud of this investment which shows how the private sector can partner the public sector to afford high quality education for exceptionally low income groups and that where teachers care and students are committed, extraordinary results can be achieved.
The current Sanari portfolio has fared well even in these difficult economic conditions, delivering respectable growth, disciplined expenditure as well as achieving key strategic outcomes in a short space of time. Sanari’s longest-standing investment is in Fernridge Solutions, a market leader in geo-spatial data and solutions in Africa, has grown its revenue and EBITDA by over 20% per annum in the past 2 years. Two of our other portfolio companies signed up large scale strategic customers at the end of last year boding well for 2020.
Our team is available to support you in your investment decision-making process. Investors should feel free to contact Sipho Sibeko directly on firstname.lastname@example.org or (071) 231 4487 with any questions. You can also download the Fund 2-Pager and Fund Overview Presentation and contact us for a fund application.
Wishing you a happy, healthy and prosperous 2020!
Samantha Pokroy | CEO