Convergence Partners Digital Infrastracture Fund L.P.

Customer

Convergence Partners Digital Infrastracture Fund L.P. (‘’CPDIF’’) is the third Fund raised and managed by Convergence Part-ners, with first closing achieved in July 2021.  The Fund’s investment objective is to generate long term capital appreciation through investment in equity, quasi-equity and equity-related investments of between 10 USDm to 30 USDm 

Funding Objective

CPDIF targets a Portfolio mix of around 60% physical infrastructure (wholesale open access network, fibre, datacenters, base stations / small cells / wireless) to improve 3G/4G connectivity and in preparation for 5G and about 40% technology (con-nectivity, cloud, fintech and Software as a Service (B2B)). In terms of investment stage the fund is expected to invest in estab-lished businesses with the majority of its deals being growth capital and buyouts. A minor share is expected to be brownfield, i.e. expansion of existing datacenters.  

The Fund is expected to achieve 250 USDm, with DEG’s proportion of max 20 USDm.
 

Reasons for financing

Overall, the development impact is expected to be significant. Focus on digital infrastructure and technology based corpo-rates that address the needs of African population and businesses in terms of internet access (fibre, datacenters, towers) and respective B2B applications.

All Limited Partners in the first close are DFIs, same with second close. With the first close of 120 USDm, the Fund will benefit from the signaling effect of DEG’s investment as with the second close it is expected to expand the team’s footprint to Eastern Africa and attract commercial investors.
 

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