Eventhose with little interest in private equity space have likely heard of Convergence Partners, owned by ICT industry veteran Andile Ngcaba.
The Rosebank-based company is a pan-African ICT–focused private equity player, delivering enhanced investment returns while underpinning Continental development.
Convergence Partners has a proven record of accomplishment of developing new investment opportunities and actively adding value to investments across the lifecycle of ICT assets.
Private equity firms play an essential role in the economy: They can help small enterprises grow and, in turn, generate returns for investors.
Brandon Doyle, a co-founder of Convergence Partners, who serves as CEO, told TechFinancials the pan-African private equity tech investor is already a serious player in Africa with R4,3 billion (c.$300 million) in assets under its control.
He says the firm aims to have assets under management of R8,5 billion ($600 million) within a few weeks.
He added that the private equity investor recently launched a fundraiser for a new R3,6 billion ($250 million) Convergence Partners Digital Infrastructure Fund.
“We anticipate the first close in the coming weeks,” says Doyle.
“In addition, we can raise additional growth capital on the balance sheets of existing portfolio companies, both in the form of debt and equity.”
The Pan-African equity investor is positioning itself for opportunities in Africa.
The Southern African Venture Capital and Private Equity Association (SAVCA) says the Southern Africa private equity industry had R184.4 billion in funds under management on 31 December 2019, up from R171 billion in 2018.
This represents a compound annual growth rate of 9.2% since 1999 when the survey first began.
The cost of investments in 2019 totalled R25.4 billion – with the top sectors invested in being infrastructure and energy, followed by telecommunications, retail and real estate.
“Private equity investment in African infrastructure has been an emerging theme over the past decade, with funds from various regions investing actively in infrastructure projects in the energy, transport, and ICT sub-categories,” said Tanya van Lill, CEO of SAVCA.