XSML Capital, a prominent growth capital provider to Small and Medium Enterprises (SMEs) in Central and Eastern Africa, has announced the launch of its fourth fund, the African Rivers Fund IV (ARF IV), securing an impressive first close of US$98.7 million.
Founded in 2008, XSML Capital has been dedicated to empowering skilled entrepreneurs in frontier markets across Africa, facilitating the growth of their enterprises into sustainable medium and large-scale companies. The organization offers tailored financing solutions, coupled with expertise and extensive networks, aimed at fostering local talent and driving enduring prosperity in underserved markets within Central and East Africa.
The latest fund, ARF IV, succeeds the fully invested ARF III and is designed to support promising SMEs in the “missing middle” segment, which often lacks attention from traditional banking sectors and financial institutions. This initiative aims to bridge the financing gap and accelerate the growth trajectory of enterprises in the region.
The infusion of new capital enables XSML to double its investments and expand its impact in the years ahead, including venturing into new markets such as Zambia. Notably, existing investors from previous funds have demonstrated renewed confidence by reinvesting and increasing their commitments, with some even doubling their exposure. Additionally, a new investor has joined the initiative, further underlining the appeal of XSML’s investment strategy.
Commenting on the successful fundraising effort, Barthout van Slingelandt, Managing Partner of XSML Capital, remarked, “Despite the challenging fundraising environment experienced last year, particularly in Africa, the first close of ARF IV has surpassed the size of our previous fund. This underscores the confidence our investors have in our investment approach and performance. They share our enthusiasm for the opportunities presented by investing in talented entrepreneurs in Africa’s frontier markets.”
The launch of ARF IV represents a significant milestone for XSML Capital, signaling its unwavering commitment to driving economic growth and fostering entrepreneurship in Central and Eastern Africa. With a strengthened financial arsenal, the organization is poised to make a tangible difference in the lives of SMEs and contribute to the sustainable development of the region.
