XSML Capital Launches African Rivers Fund IV with US$98.7 Million Investment

XSML Capital Launches African Rivers Fund IV with US$98.7 Million Investment

By Staff Writer, 16 March 2024

XSML Capital, a key player in providing growth capital to Small and Medium Enterprises (SMEs) in Central and Eastern Africa, has announced the launch of its latest venture, the African Rivers Fund IV (ARF IV), securing an initial investment of US$98.7 million.

Established in 2008, XSML Capital has been dedicated to empowering skilled entrepreneurs across African frontier markets, facilitating the growth of their enterprises into sustainable entities of medium to large scale.

Through tailored financing, extensive networks, and expert guidance, XSML Capital aims to foster local talent and foster lasting economic development in underserved regions of Central and East Africa.

The inception of ARF IV follows the successful deployment of capital from ARF III, which is now fully utilized.

The African Rivers Funds are specifically designed to support the growth of promising SMEs operating in Central and East Africa, filling the financing gap often overlooked by traditional banking institutions and other financial entities.

With the infusion of fresh capital, XSML Capital is poised to significantly expand its investments and influence in the region in the coming years, extending its reach into new markets such as Zambia.

Notably, existing investors have demonstrated their continued confidence in XSML Capital's investment strategy by reinvesting and increasing their stakes, with some even doubling down on their commitments.

Additionally, the venture welcomed a new investor onboard.

Commenting on this milestone achievement, Barthout van Slingelandt, managing partner of XSML Capital, remarked, "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. 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."

Source: Tom Jackson / Disrupt Africa

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