January 28, 2026 – XSML Capital, a leading provider of growth capital to SMEs in African frontier markets, today announced the final close of African Rivers Fund IV (ARF IV) at US$ 142 million, exceeding its hard cap of US$ 135 million.
Strong investor confidence in challenging markets
This final close of its fourth fund is a major milestone for XSML. It demonstrates strong investor confidence in its investment strategy, impact track record, and ability to support growing SMEs in underserved markets where access to long-term growth capital remains limited and XSML often is the only or one of the few investors providing growth capital ranging from US$ 300,000 to US$ 10 million. We have local offices in Angola, the Democratic Republic of the Congo (DRC), Kenya, Uganda, and Zambia.
Since the first close, three additional Development Finance Institutions (DFIs), including one new DFI investor, along with two German family offices have joined ARF IV, further strengthening the fund’s investor base.
“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,” said Barthout van Slingelandt, Managing Partner of 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”, adds Van Slingelandt. “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.”
Fifteen-year track record of turning capital into growth
XSML expects ARF IV to build a portfolio of more than 50 companies. As of December 2025, the fund had committed USD 85 million, representing 60% of total investment capital. Investments to date are concentrated in the DRC (47%), Angola (22%), Uganda (17%), and Zambia (14%), across manufacturing, retail, beverages, food processing, and the pharmaceutical sector.
Since its first investment around fifteen years ago, the fund manager has invested more than 100 SMEs across Central, East, and Southern Africa, and across sectors. As of year-end 2024, portfolio companies supported more than 8,500 jobs and had created over 4,100 new jobs.