Private equity fund Pape Fund 3 has expanded its investment in fraud prevention and payment security company Entersekt, buying out financial services firm Nedbank Private Equity’s equity stake.

Pape Fund 3 had initially invested in Entersekt International in July 2022.

“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. 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,” said Pape Fund Manager CEO Dr Zuko Kubukeli.

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.

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, which is a suite of specialised solutions powered by cutting-edge AI technologies that help to identify and prevent fraud and financial scams.

“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 they are transitioning from an equity holder, they remain a valued client, providing us with great insights into the needs of the market,” he added.

“Nedbank Private Equity has been invested in Entersekt since 2013, and it has been remarkable to have walked this journey together and witness the evolution of the business 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,” he said.