FMO signs off on Africa-focused private equity fund investments

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Dutch development bank FMO has signed off on $50 million in commitments to two private equity funds backing opportunities in Africa. Of the total, $30 million is being invested in Convergence Partners Digital Infrastructure Fund (or CPDIF), which is aiming to raise a total of $250 million by the time of its final close. The other fund confirmed for a commitment is Ezdehar’s Egypt Midcap Fund II which is now $20 million closer to its ultimate goal of $150 million.

FMO’s investment in CPDIF represents an increase of $10 million on the development bank’s commitment to South Africa-based Convergence Partners‘ second fund in 2013. The latest fund’s investment strategy is governed by some of the emerging growth themes prevalent in the digital infrastructure industry today, specifically, those offered by the developments in or around 5G technology, the Internet of Things, Artificial Intelligence, FinTech, and network virtualization. CPPDIF’s deals are expected to fall within the $20 million to $30 million range, although its mandate allows it to make larger investments if the opportunity warrants it.

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