Convergence Partners has acquired a strategic stake in 42Markets Group, an incubator, investor and builder of high-growth specialist businesses in the financial and capital markets sector.
South Africa’s Convergence Partners, a private equity investment manager focused on technology in sub-Saharan Africa, has acquired a strategic stake in 42Markets Group, an incubator and builder of high-growth specialist businesses in the financial and capital markets sector. The investment will enable 42Markets to expedite its growth by expanding its product line and geographic reach.
Convergence Partners – USD 600m under management
Convergence Partners has a long history of investing successfully in digital infrastructure, with over USD 600 million under management, including the recently launched Convergence Partners Digital Infrastructure Fund, focused on investments in data centers, fiber networks, wireless and towers, edge, artificial intelligence, Internet of Things, cloud, fintech and platforms across Africa. Convergence Partners’ team is located in offices in South Africa, Nigeria, Mauritius, Paris and soon Kenya.
42Markets Group specializes in digital transformation and increased efficiency of African capital markets. The company is positioned to assist second-tier capital markets in reducing friction and costs, enhancing transparency and real-time risk management, and improving access to banking and financial services. This allows the firm to extend the reach of banking and financial services to a broader cross section of the population.
Andries Brink, CEO of 42Markets Group, said, “Together, we will do the same for financial markets, in connecting central banks and other big asset generators to corporate and retail investors, safely and accurately, across the full spectrum of capital markets solutions. In a very real sense, 42Markets companies are the ‘over-the-top’ capital enablers, on the infrastructure that Convergence Partners has established.”
Andile Ngcaba, Chairman of Convergence Partners, said, “42Markets’ expertise in decentralized finance, regtech and fintech aligns perfectly with our vision of utilizing technology to bridge the digital divide and improve access for those in need. As blockchain adoption on the continent continues to grow, we look forward to embarking on this journey with 42Markets to democratize financial markets and enhance accessibility.”
A broader range of products
As a result of the new investment, 42Markets Group will be able to offer a broader range of financial products to a more extensive cross-section of the population. The partnership promises to bring sustainable change to African financial markets.
Fintech remains the leading sector in terms of startup funding in Africa, though e-commerce, retail tech and health tech startups are gathering ever greater attention.