Moushmi Patel’s interview with Advancing Women in Investment (AWI)

Insights by Moushmi Patel, Partner.

Moushmi Patel was recently interviewed by the team at Advancing Women in Investing (AWI). She shared advice on how to overcome the classic catch-22 situation in building out a private equity firm – the need for a track record to attract investors but needing capital to build a track record!

Read the case study: Moushmi Patel_AWI Case Study

“They say it takes 10 years for overnight success. That’s us,” says Moushmi Patel. Moushmi Patel, co-founder of Sanari Capital, knows the African investment scene isn’t for the faint of heart. As a woman leading a South African fund, building a track record – the holy grail for investors – felt like an uphill battle.

Starting with limited resources, Sanari Capital secured their first investment from High-Net-Worth Individuals. But the vision was great, and Sanari always knew they wanted to attract Institutional investors. They sought a proven track record, a clear path to success. Sanari faced a classic Catch-22: needing a diverse and experienced team for long-term success, but limited funds to build it in the beginning.

“We had to be strategic,” says Moushmi. They carefully grew the team, balancing expertise with financial sustainability. It was a constant balancing act.

The second fund brought a new challenge. Even having a first fund mostly deployed, institutional investors hesitated entrusting them with a larger pool of capital. Sanari’s solution? Investing in the team and bringing in strategic new partners to bolster their experience. However, this raised questions about team dynamics and how well they would work together. Some investors adopted a cautious approach, extending the fundraising process. Sanari didn’t waver. They proved their capabilities day by day. “It was a lot of hard work, long nights,” Moushmi admits. “But three years later, with an exceptional team and a fantastic track record, we closed a USD 65 million fund!”

Her message to aspiring IVMs? “Be prepared to work hard, break down barriers, and prove your worth. The reward is worth the effort!”

Also, in case you missed it, research strongly suggests that diversity in leadership translates to superior financial performance. Studies reveal that funds with a female representation of 30 – 70% boast a 20% higher net internal rate of return on average and also demonstrate that funds with strong female leadership have a propensity to invest in twice as many female-led businesses compared to their male counterparts. So what are the obstacles to more widespread allocation to female-led and gender diverse investment firms? Read the AWI research findings here: https://lnkd.in/e6YeQS6C -Capital-for-IVMs-in-Africa_Research-Report.pdf