DEG backs Convergence's third fund
German development finance institution DEG has signed an investment of up to $20 million in Convergence Partners Digital Infrastracture Fund L.P. (CPDIF), the third fund raised and managed by Convergence Partners. The first closing of the fund was 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 million to $30 million.
CPDIF targets a portfolio mix of around 60% physical infrastructure (wholesale open access network, fibre, datacentres, base stations / small cells / wireless) to improve 3G/4G connectivity and in preparation for 5G and about 40% technology (connectivity, cloud, fintech and software-as-a-service). In terms of investment stage, the fund is expected to invest in established 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 datacentres.
The fund is expected to raise a total of $250 million.
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