African technology investment firm Convergence Partners has received a ZAR400 million (US$38.6 million) long-term funding facility provided by Nedbank Capital.
The facility will be utilised by Convergence Partners Investments, which houses Convergence Partners’ first investment portfolio, to fund the next phase of the company’s investment lifecycle.
The investment will primarily focus on Convergence Partners Communications Infrastructure Fund (CPCIF), with HumanIPO reporting last year the company had dedicated US$145 million to the information and communications technology (ICT) sector in Africa.
Nedbank has participated in the capitalisation of CPI over the past seven years.
“This new facility will support the critical investment activities of our recently launched ICT infrastructure fund, and will allow us to continue the successful relationship we have with Nedbank Capital – both at a Convergence Partners level and through working together in many of our underlying ventures,” said Brandon Doyle, chief executive officer (CEO) of Convergence Partners.
“We will continue to focus strongly on initiatives that increase the availability of communications, broadband services and new technology offerings to African people.”
Stuart Harrison, head of acquisition and leveraged finance at Nedbank Capital, said: “This mutually beneficial partnership with Convergence Partners has, to date, provided several funding opportunities for Nedbank Capital, and the extension of this most recent facility further cements our relationship.”
Earlier this year, Convergence Partners invested in in Cape Town’s 4Di Capital alongside Reinet Fund and E. Oppenheimer & Son, doubling 4Di’s portfolio.
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