ICT investment management firm, Convergence Partners has raised R400 million in a new long-term funding from Nedbank Capital to fund the next phase of its investment lifecycle in its recently launched Convergence Partners Communications Infrastructure Fund (CPCIF).
CPCIF, which reached its first close of $145 million in October 2013, is the second investment vehicle that Convergence Partners manages, focusing on ICT infrastructure related companies and projects on the African continent.
Nedbank Capital and Convergence Partners have a longstanding relationship, with Nedbank Capital having previously participated in the original capitalisation of CPI, through a R300 million preference share facility. This facility was used to fund CPI’s investment activities over the past seven years and has, subsequently, been fully settled.
According to Brandon Doyle, CEO of Convergence Partners,“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. We will continue to focus strongly on initiatives that increase the availability of communications, broadband services and new technology offerings to African people.”
“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,” said Stuart Harrison, Head of Acquisition and Leveraged Finance at Nedbank Capital.
