XSML Capital, a leading provider of growth capital to SMEs in Central and Eastern Africa, has closed its fourth fund, African Rivers Fund IV (ARF IV), at US$142 million, exceeding its hard cap.
XSML Capital was founded in 2008 to help talented entrepreneurs in frontier markets in Africa grow their businesses into sustainable medium and large companies. XSML Capital provides expertise, network, and bespoke financing, geared to nurture local talent, and bring durable prosperity in underserved markets in Central and East Africa.
Its fourth fund, ARF IV, follows on from ARF III, which is now fully invested. The African Rivers Funds support promising small and medium-sized enterprises in Central and East Africa, which are in the missing middle segment not addressed by the banking sector and other financial institutions.
ARF IV closed at US$ 142 million, exceeding its hard cap of US$135 million. Since the first close last March, three additional development finance institutions (DFIs), including one new DFI investor, along with two German family offices joined the fund, further strengthening its investor base.
“Exceeding our target-size and hard cap for Fund IV in a challenging fundraising environment demonstrates that investors support our approach to investing in SMEs,” said Barthout van Slingelandt, managing partner of XSML Capital.
“We have a strong conviction that private credit, in combination with hands-on business support, is often a great fit for local SMEs. It allows entrepreneurs to grow without giving up ownership, while giving their businesses the long-term, flexible funding needed to finance their expansion. Investors value both the practical support we provide to entrepreneurs beyond capital, and our ability to offer liquidity earlier in the investment cycle, which remains scarce in African markets.”
Source: Disrupt Africa
