Convergence Partners Digital Infrastructure Fund (CPDIF) starts attracting commitments

Convergence Partners Digital Infrastructure Fund (CPDIF) starts attracting commitments

With its second fund nearing full deployment, Convergence Partners‘ third private equity fund is starting to attract potential commitments from Africa-focused LPs. Among them is the European Investment Bank which announced in mid-December that it is reviewing a possible €15 million (or approximately $17.5 million) investment in Convergence Partners Digital Fund III. By the time of its final close, the fund aims to have raised a total of $250 million which would make it the largest fund raised by South Africa-based TMT investment specialist.

According to the notification on EIB’s website, the fund’s strategy will be to back growth capital investments in digital businesses and other ancillary opportunities in the sector. Information on typical deal ticket sizes was no immediately available. In common with its two predecessors, the fund’s investments are expected to deliver impact as well as financial returns, contributing to a number of the UN’s Sustainable Development Goals.

According to Convergence Partners’ website, the private equity firm’s first two funds have invested in 29 companies between them and have exited 14 of them. For its most recent transaction, the $200 million Convergence Partners Communications Infrastructure Fund expanded its holding in Channel VAS, a Dubai-based fintech, buying a 1.4% stake from Ethos Capital for $5 million.

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