In brief: DFIs propel African SME fund to first close

XSML Capital, a GP focused on African SMEs, has reached a first close for its fourth fund on $98.7 million.

African Rivers Fund IV continues the firm’s strategy of supporting SMEs in Central and Eastern Africa that are not supported by the banking sector and other financial institutions, according to a statement. The fund’s predecessor, African Rivers Fund III, closed on $81 million in 2021. The firm did not respond to New Private Markets request for fund performance information.

XSML Capital was founded in 2008 to invest in frontier markets in Africa. The firm has created 3,109 jobs through its investment activity, according to its website. The firm expects to open a new office in Zambia in the first half of 2022.

The investors in fund four are: British International Investment, FMO, International Finance Corporation, Norfund, Swedfund and the Swiss Investment Fund for Emerging Markets.