April 27, 2023
by In a move that bolsters digital infrastructure expansion in Africa, Convergence Partners has acquired a strategic stake in 42Markets Group, a leading incubator, investor, and builder of high-growth specialist businesses in the financial and capital markets sector. The investment reflects Convergence Partners’ commitment to bridging the digital divide and improving access through technology.
Chairman of Convergence Partners, Andile Ngcaba, expressed his enthusiasm for the partnership, stating, “We are thrilled with our investment in 42Markets Group as it aligns perfectly with our vision of utilizing technology to democratize financial markets and enhance accessibility, particularly in underserved regions.” With expertise in decentralized finance (DeFi), regtech, and fintech, 42Markets Group is well-positioned to drive the digital transformation and improved efficiency of capital markets in Africa.
The investment will empower 42Markets Group to accelerate growth by expanding its product offerings and geographic reach. This strategic move was made possible through the Convergence Partners Digital Infrastructure Fund (CPDIF), a $296 million private equity fund dedicated to investing in digital infrastructure opportunities across sub-Saharan Africa.
The transaction embodies one of CPDIF’s key fintech themes, focusing on businesses with high impact potential that are democratizing financial markets. By enabling second-tier capital markets to enhance their capabilities, reduce friction and costs, improve transparency, and implement real-time risk management, 42Markets Group aims to extend banking and financial services to a broader segment of the population.
Andries Brink, Group Chief Executive Officer of 42Markets Group, acknowledged Convergence Partners’ role in Africa’s digital leapfrogging and expressed excitement about the collaboration. Brink stated, “Together, we will connect bulk providers to retail across the spectrum, covering all financial products. The 42Markets companies become capital over-the-top providers on the infrastructure that Convergence Partners has established, bringing real and sustainable change to markets.”
