XSML Capital, a leading provider of growth capital to SMEs in Central and Eastern Africa, has launched its fourth fund, African Rivers Fund IV (ARF IV), with a first close of US$98.7 million.
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.
The new funding allows XSML to double its investments and impact over the coming years and follow investees into new markets like Zambia. Existing investors in previous funds reinvested and increased their commitment, with some doubling their exposure. One new investor joined.
“Despite the tough climate for fundraising last year and particularly in Africa, the first close of ARF IV exceeded the size of our previous fund,” said Barthout van Slingelandt, managing partner of XSML Capital. “This is a clear sign of confidence of our investors in our investment approach and performance. They share our excitement about the opportunities to invest in talented entrepreneurs in some of Africa’s frontier markets.”
