PAPEfunds has recently acquired Nedbank Private Equity’s equity stake in Entersekt, a Financial Authentication Company, following an initial investment in July 2022. 

Zuko Kubukeli, PAPE Fund Manager’s CEO, said: “We are very excited about Entersekt’s potential to grow from being a South African tech company into an internationally recognized enterprise with a presence in the USA, Europe, the Nordics, Pakistan, and the Philippines.” 

“This is a great South African success story, and we are delighted that PAPE Fund 3 and its investors are now firmly part of the journey,” he added.

Entersekt is one of the leading providers of financial fraud prevention and payment security solutions, that has accelerated its global growth over the past year. 

The company secures over 2.5 billion transactions per year for over 850 financial institution clients globally, giving it a compelling global footprint and a clear technology advantage of a solution spanning across digital, payment, and data channels of issuers, acquirers, and merchants. 

Most recently, Entersekt was highlighted as a partner of Mastercard’s in their Scam Protect announcement, a suite of specialized solutions powered by cutting-edge AI technologies, which help identify and prevent fraud and financial scams. 

“PAPE has been a valuable investor and advisor to Entersekt since their initial investment in 2022,” said Schalk Nolte, CEO of Entersekt. 

“Their expanded investment is evidence of their confidence in our business and the tremendous growth opportunities ahead. Nedbank has also played a significant role in aiding our progress, as both an investor and a customer. While they are transitioning from an equity holder, they remain a valued client, providing us with great insights into the needs of the market.” “Nedbank Private Equity has been invested in Entersekt since 2013, and its’s been remarkable to have walked this journey together and witness the evolution of the business and all its achievements,” added Amir Regev, Principal: Private Equity at Nedbank CIB. 

“From Nedbank being one of Entersekt’s first customers to now servicing hundreds of customers globally, it is a testament to the quality of the management team and their innovative solutions. I am confident that Entersekt will continue to thrive and redefine the boundaries of what is possible.”

PAPE Fund Managers is a Level-1 rated Black Empowered fund manager.

PAPE Fund 3 is a R1.06bn ($55m) private equity fund that is fully invested in six South African midcap unlisted businesses that have grown internationally.