XSML Capital announces first close of fourth fund
XSML Capital announces first close of fourth fund
XSML Capital is a provider of growth capital to SMEs in Central and Eastern Africa.
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XSML Capital, a 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 $98.7 million. 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.
The investors are British International Investment, the UK’s development finance institution and impact investor; FMO, the Dutch entrepreneurial development bank; the International Finance Corporation (IFC), the private sector arm of the World Bank Group; Norfund the Norwegian Investment Fund for developing countries; and Swedfund, the Swedish Development Finance Institution. SIFEM, managed by ResponsAbility Investments, is a new investor.
“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,” says Barthout van Slingelandt, 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.”
ARF IV already has a strong pipeline, including potential new investments in Zambia, where XSML will open an office in the first half year of 2024. XSML expects to build a portfolio of over 50 companies in the new fund.
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