Convergence Partners, the communications technology investment management firm controlled by businessman Andile Ngcaba, has signed a R400m long-term funding deal with Nedbank Capital.
The facility will be used by Convergence Partners Investments (CPI), the vehicle that houses the company’s first investment portfolio.
CPI will use the money to fund the next phase of its investment lifecycle and primarily its commitment to Convergence Partners’ recently launched communications infrastructure fund, the company said in a statement.
The fund, which reached its first close of US$145m in November 2013, is the second investment vehicle that Convergence Partners manages, focusing on communications technology 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 R300m preference share facility. This facility was used to fund CPI’s investment activities over the past seven years and has, subsequently, been fully settled,” Convergence Partners said.
“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 Convergence Partners CEO Brandon Doyle in the statement.
“We will continue to focus strongly on initiatives that increase the availability of communications, broadband services and new technology offerings to African people.” — (c) 2014 NewsCentral Media