Convergence Partners, a private equity firm based in South Africa, recently announced that its Convergence Partners Digital Infrastructure Fund (CPDIF) had successfully closed at $296 million, which is more than 18% more than its initial goal.
The Convergence Partners Digital Infrastructure Fund was established in June 2020 and had its first successful closing of $120 million in July 2021.
According to a statement released by the company, the fund’s closing received support from both existing and new investors in the fund. These investors included pension funds, financial institutions based in Europe and Africa, and international and regional development finance institutions (DFIs).
The majority of the fund’s investments will be focused on businesses in sub-Saharan Africa that are involved in the development of digital infrastructure, including things like fibre networks, data centres, wireless, towers, the cloud, the Internet of Things (IoT), and artificial intelligence (AI).
Brandon Doyle, CEO and founding partner of Convergence Partners, said in a statement regarding the funding that this closing is just the beginning and that the company is looking forward to working with its investors and partners to build the digital infrastructure required to support the growth of the region’s digital economy. The statement was issued in response to the funding.
The fund also wants to create and support programs that make it easier for people to use digital technology to access important services like healthcare, finance, and education.
Some of the companies in Convergence Partners’ portfolio are the venture capital firm 4DI, the provider of IT infrastructure solutions Dimension Data, and the company that runs the fibre network Fibreco.
The Convergence Partners Digital Infrastructure Fund is the biggest fund the company has ever made. It brings the total amount of money the company is in charge of to over $600 million.