Infinite Partners raises $169.3 million to back South African growth businesses

Infinite Partners, a South African private equity firm, has successfully raised R2.8 billion ($169.3 million) to invest in established mid-market businesses across various sectors. The firm surpassed its initial target of R2.5 billion ($151.1 million) by raising capital exclusively from South African institutional investors, including pension funds, insurers, asset managers, and banks.

Infinite Partners' strategy focuses on backing businesses with strong growth potential, utilizing technology to improve efficiency, expand access to essential services, and create sustainable value over time. The fund targets companies with significant structural growth drivers, strong management, healthy margins, high barriers to entry, and a credible exit strategy.

Infinite Partners has already made its first two investments in enterprise software company e4 and digital infrastructure business CYNK. e4, an enterprise software business, digitises mortgage origination and property transactions, significantly reducing the home-buying process and processing R2.8 trillion ($169.3 billion) in mortgages since inception.

CYNK, on the other hand, develops and owns fibre assets, providing digital infrastructure access to underserved communities and townships, bridging the digital divide and improving internet affordability. Infinite Partners employs a generalist approach, investing in established businesses with strong growth potential across sectors such as financial services, digital infrastructure, business services, education, alternative lending, and software-as-a-service (SaaS).

The firm's co-founder and CEO, Edward Pitsi, emphasized that the investment philosophy remains consistent, focusing on quality businesses with identifiable tailwinds and the potential to generate sustainable value over time. Investor confidence played a crucial role in the fund's successful closing, as some early backers increased their commitments after witnessing Infinite Partners' investment strategy materialize.