SOUTH AFRICA – Pape Fund 3, a private equity fund, has expanded its investment in fraud prevention and payment security company Entersekt by buying out the equity stake of financial services firm Nedbank Private Equity.
Pape Fund 3, a R1.06 billion (US$58.86M) private equity fund fully dedicated to South African mid-cap unlisted businesses with international growth, originally invested in Entersekt International in July 2022.
Managed by PAPE Fund Managers, a Level-1 rated Black Empowered fund manager, PAPE Fund 3’s investment has bolstered Entersekt’s BEE credentials.
“We are very excited about Entersekt’s potential to grow from being a South African tech company into an internationally recognised enterprise with a presence in the US, Europe, the Nordics, Pakistan and the Philippines,” said Pape Fund Manager CEO Dr Zuko Kubukeli.
“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.”
Entersekt provides financial fraud prevention and payment security solutions, and has accelerated its global growth over the past year. Notably, in December 2023, it acquired the Modirum 3-D Secure software business from Helsinki-based security technology firm Modirum.
“Pape has been a valuable investor and adviser to Entersekt since their initial investment in 2022. Their expanded investment is evidence of their confidence in our business and the tremendous growth opportunities ahead,” said Entersekt CEO Schalk Nolte.
“Nedbank has also played a significant role in aiding our progress, as both an investor and a customer. While transitioning from an equity holder, they remain a valued client, providing us with great insights into the market’s needs,” he added.
Entersekt secures more than 2.5-billion transactions a year for more than 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, Pape Fund 3 said.
Recently, Entersekt was highlighted as a partner of Mastercard in its Scam Protect announcement. Scam Protect is a suite of specialised solutions powered by cutting-edge AI technologies that help to identify and prevent fraud and financial scams.
“Nedbank Private Equity has been invested in Entersekt since 2013, and it has been remarkable to have walked this journey together and witnessed the business’s evolution and all its achievements,” said Nedbank Corporate and Investment Banking private equity principal Amir Regev.
“From Nedbank being one of Entersekt’s first customers to now serving 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.”
Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy, and more. SUBSCRIBE HERE
