XSML Capital announced it has reached a final close of African Rivers Fund IV at $142 million, exceeding the fund’s $135 million hard cap, as the manager pointed to sustained investor appetite for SME-focused strategies in African frontier markets despite a tougher fundraising backdrop.
The firm said the new vehicle will continue its approach of providing growth capital to businesses in underserved markets where access to long-term financing remains limited. XSML typically invests between $300,000 and $10 million and maintains local offices in Angola, the Democratic Republic of the Congo, Kenya, Uganda, and Zambia.
XSML said the fund’s investor base expanded since the first close, with three additional Development Finance Institutions joining, including one new DFI investor, alongside two German family offices.
The manager also emphasized its focus on private credit combined with hands-on business support, positioning the structure as a way for entrepreneurs to fund expansion without giving up ownership while potentially providing investors with earlier liquidity than is common in many African markets.
XSML expects ARF IV to build a portfolio of more than 50 companies. As of December 2025, the fund had committed $85 million, which it said represents 60% of total investment capital. Commitments to date were concentrated in the DRC (47%), Angola (22%), Uganda (17%), and Zambia (14%), spanning manufacturing, retail, beverages, food processing, and pharmaceuticals.
Looking back across its broader platform, XSML said it has invested in more than 100 SMEs across Central, East, and Southern Africa since its first investment around fifteen years ago. As of year-end 2024, XSML said portfolio companies supported more than 8,500 jobs and had created over 4,100 new jobs.
KEY QUOTES
“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.”
Barthout van Slingelandt, Managing Partner, 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.”
Barthout van Slingelandt, Managing Partner, XSML Capital
