Netherlands-based fund manager XSML Capital provides mezzanine and debt financing for small and medium-sized businesses in Angola, Zambia, Uganda, the Democratic Republic of Congo and takes minority stakes in some companies.
The firm closed its fourth African Rivers Fund at $142 million. The fund had secured $98 million in 2024 with backing from responsAbility’s Swiss Investment Fund for Emerging Markets, BIO Invest’s SDG Frontier Fund and six development finance institutions. (See, “Private investors warm to small business investments in Africa’s most underserved markets”). The final close adds three development financiers and two German family offices.
“Performance has been good overall in the funds and that helps in raising a new fund,” XSML’s Barthout van Slingelandt told ImpactAlpha.
Market fit
ARF IV will deploy capital ranging from $300,000 to $10 million in around 50 companies in manufacturing, retail, beverages, food processing and pharmaceuticals. The fund had already deployed around 60% of its capital, nearly $85 million, by the end of last year, almost half of it in the DRC.
Van Slingelandt said the firm is seeing demand for growth capital and that private credit is fit for purpose. “We know that our upside is capped a bit because we do more credit,” he said. “What is more important is if you manage your downsides well and you manage your investments efficiently, you can get very decent returns for investors and that means they come back. That liquidity element is important.”
XSML is looking at a first close of around $40 million to $50 million for a new climate fund later this year.
