• XSML Capital closed African Rivers Fund IV at $142m, above its $135m target
• The fund aims to finance about 50 small and medium-sized businesses
• Investments focus on Eastern Africa, Angola, and the Democratic Republic of Congo

XSML Capital said on Wednesday, January 28, 2026, that it had completed the final close of its fourth investment vehicle, African Rivers Fund IV (ARF IV), with total commitments of $142 million. The amount exceeds the fund’s initial target of $135 million.

ARF IV is structured to finance around 50 African small and medium-sized enterprises operating in segments where access to long-term financing remains limited. Priority markets include Eastern Africa, Angola, and the Democratic Republic of Congo, where XSML Capital has an established local presence.

Exceeding both the fund’s target size and its hard cap in a challenging fundraising environment reflects continued investor support for the firm’s SME-focused strategy, said managing partner Barthout van Slingelandt. He said private credit, combined with hands-on operational support, is often well suited to the needs of local small businesses.

Investment tickets per company will range from $300,000 to $10 million. Financing will be provided through a mix of private debt and minority equity stakes. This structure allows business owners to fund growth without relinquishing control.

Since the first close of ARF IV in March 2024, when $98.7 million was raised, the fund has added three development finance institutions and two German family offices to its investor base. The additions further diversify its sources of capital.

Investments already underway

By the end of December 2025, ARF IV had committed $85 million, representing 60% of its investment capacity. The portfolio is concentrated in the Democratic Republic of Congo, which accounts for 47%, followed by Angola at 22%, Uganda at 17%, and Zambia at 14%.

Target sectors include manufacturing, distribution, beverages, agribusiness, and pharmaceuticals. These activities are linked to local consumption and industrial processing.

The fundraising outcome confirms continued interest from institutional investors in private debt strategies targeting African small businesses. It also highlights the appeal of frontier markets such as the Democratic Republic of Congo and Angola, where demand for productive capital remains strong.

With ARF IV, XSML Capital reinforces its position as a specialist in financing African SMEs. The firm says it has invested in more than 100 small and medium-sized businesses across Central, Eastern, and Southern Africa over 15 years.

Chamberline Moko