Convergence Partners has an investment focus on the TMT sector. From a geographic perspective, Convergence Partners focuses on Africa and the Middle East, whilst select opportunities falling within Convergence Partners’ strategy outside of these areas will also be pursued.
Convergence Partners typically takes significant minority interests and invests across the entire life cycle of assets, including:
- Private equity and expansion capital into established businesses;
- Project equity into major new infrastructure projects; and
- Development and venture capital into early-stage companies.
Investments are often made in partnership with other established players, existing investees or seasoned management teams.
Convergence Partners is not a passive investor and has a proven track record of developing new investment opportunities and projects as well as adding value to investments. Convergence Partners’ primary strategy is to partner businesses where it believes that it can make a meaningful contribution to strategic development and growth to the benefit of all shareholders over the medium to long-term.
There is a significant investment focus on projects that will improve general access of African corporates and individuals to communications, broadband services and new technology offerings that can improve lives. A number of projects fitting this philosophy have already been completed, while many new projects are being actively worked on.
Our aim is to continue to build a carefully constructed portfolio of investments across the TMT sector on the African continent and maximize synergies as between investee companies, particularly in light of the extensive changes to the regulatory framework, technologies and the requirements of customers, both enabling and demanding that convergence takes place aggressively.
Convergence Partners does, and is well placed to continue to, add value and provide meaningful consultancy services to its investee companies, including guidance on regulatory environments, African market expansion and the procurement and hiring of new talent, through our:
- Track record of investing into and managing a portfolio of entities in our chosen sector across Africa, and generating superior portfolio growth
- Deep understanding of the TMT sector, including:
- The existing regulatory environment and ongoing changes thereto
- Technology and convergence trends and
- The likely business impact of these
- Relationships with key players and regulators both in the region. This network can be deployed to assist investee companies in the development of new business relationships, product offerings and markets
- Anchor investments in leading players in their respective fields, including the largest IT network integrator in Africa (Dimension Data Middle East & Africa) and leading enterprise internet service provider in the region (Internet Solutions)
- A multi-disciplinary team experienced in dealmaking in the TMT sector with a proven capacity to add value and
- Access to capital with a preference for leveraging investments to optimize returns
Where relevant in a South African context, Convergence Partners also brings its BEE credentials to investees and is able to assemble and manage appropriate consortia around it.
Convergence Partners Portfolio I (CPPI)
Convergence Partners has access to committed capital on a drawdown basis for investment in accordance with our investment philosophy. Our funding partners are:
Convergence Partners Communications Infrastructure Fund (CPCIF)
Convergence Partners is at an advanced stage of raising the CPCIF, to be its investment vehicle for ICT Infrastructure and related opportunities. Investors compromise leading local and international development and commercial institutions.