Sanari Capital, a private equity investor targeting mid and small cap opportunities in South Africa, has completed its control investment in Fernridge Solutions, taking a 51% stake in the geo-spatial data and solutions provider. The deal was transacted, in part, through Sanari Growth Partners, the firm’s $15 million 12J fund. Financial terms of the deal were not disclosed.
The deal marks the second investment for Sanari Growth Partners. As well as supporting Fernridge’s expansion strategy, the investment helps the company achieve majority black ownership. As a result of the transaction, Sanari will take three seats on Fernridge’s Board of Directors. In addition to Samantha Pokroy, who led the deal for the investor, Moushmi Patel and Neo Maruatona Ratau will also be representing Sanari on the company’s board.
Fernridge, which was founded in 2002 by Stephen Walters and Sybrand Strauss, offers its clients insights to help inform their location-based business decision-making processes. The company has spent 10 years mapping over 140 cities across the continent, providing a diverse range of organizations including retailers, property developers, private equity investors and firms in the financials services, healthcare and education sectors as well as public services providers with information that helps them better engage their customers and expand, reposition or consolidate their footprint.
According to Sanari’s website, the fund’s optimal investment size is between R10 million and R40 million (approximately $75,ooo to $3 million). Sanari invests more in parallel with the generalist country-focused fund, favoring growth equity, consolidations, buyout and platform building transactions, using both equity and mezzanine investments.
A Bowmans team, led by partner Joshua Janks, provided Sanari with legal advisory services for the transaction.