Convergence Partners Communications Infrastructure Fund (CPCIF) has made its first West African equity investment, acquiring $20m minority stake in Venture Garden Nigeria (VGN), a diversified fintech company with significant operations in Nigeria.

CPCIF, managed by Convergence Partners, is the largest fund dedicated solely to ICT infrastructure in Africa.

The fund is currently deploying capital to build a portfolio of investments across the ICT spectrum, improving access to technology as well as broadband services.

Brandon Doyle, CEO of Convergence Partners, said: “Innovative financial technology is a key component of the African development story, as it enhances efficiency and governance, and enables service provision to the broader population.”

VGN is a holding company for a group of financial technology entities that provide innovative, data-driven, end-to-end technology platforms addressing reconciliation and payment processing inefficiencies across multiple industry verticals.

Current solutions are tailored for financial services, education, aviation, power, downstream oil and gas and cyber-security.

“With its high calibre and energised management team, and leading position in the fast growing markets in which the company operates, VGN is a very exciting investment opportunity for us,” said Doyle.

The injection of equity capital into VGN will enable the company to accelerate its growth plans domestically in Nigeria, and across the West African region.

Bunmi Akinyemiju, CEO of VGN, said: “We believe that the fintech space is a catalyst for technology-driven transformation in Africa and are pleased to have a specialist investor like Convergence Partners on board who shares our vision of technology as a key enabler and driver of economic development, for example in the education sector.”

“The culture of Convergence Partners is one that aligns well with ours and we are confident that the professionalism, commitment to excellence and fearless approach to disruptive innovation that we strive for, is what they look for in the teams they back. With the support of Convergence Partners, we believe we can accelerate the execution of our strategy, and achieve a wider customer reach,’’ he said.

Convergence Partners recently announced the final close of CPCIF, raising over $200m, and the opening of an office in Lagos, Nigeria’s commercial hub.

Convergence Partners’ local presence will enhance the management and monitoring of portfolio companies in this key region as well as Convergence Partners’ on the ground transaction capability.