Specialist African ICT investment management firm, Convergence Partners Management, has announced a new R400-million long-term funding facility from Nedbank Capital for Convergence Partners Investments (CPI). CPI is the vehicle that houses Convergence Partners’ first investment portfolio.
The facility will be utilised by CPI to fund the next phase of its investment lifecycle, primarily its commitment to the recently launched Convergence Partners Communications Infrastructure Fund (CPCIF). CPCIF, which reached its first close of $145-million in November 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.
“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,” comments Brandon Doyle, 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, adds: “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.”