XSML Capital has reached the final close of its fourth vehicle, African Rivers Fund IV, at $142m, surpassing its $135m hard cap.

The close marks a key milestone for the Africa-focused investment manager and comes against the backdrop of a difficult global fundraising environment, underscoring continued investor support for XSML’s SME-focused private credit strategy.

African Rivers Fund IV provides long-term growth capital to small and medium-sized enterprises operating in frontier markets across Central and Eastern Africa. The fund targets investments ranging from $300,000 to $10 million and benefits from XSML’s on-the-ground presence in Angola, the Democratic Republic of the Congo, Kenya, Uganda, and Zambia.

Since its first close, the fund has attracted three additional development finance institutions, including one new DFI investor, alongside two German family offices, further diversifying and strengthening its limited partner base.

Commenting on the close, managing partner Barthout van Slingelandt said the fund’s performance reflects continued investor confidence in XSML’s model, which combines private credit with hands-on operational support.

He noted that the approach allows local entrepreneurs to scale their businesses without diluting ownership, while accessing flexible, long-term financing. He added that XSML’s ability to provide earlier liquidity remains a differentiating factor in African markets where exits are still limited.

African Rivers Fund IV is expected to build a portfolio of more than 50 companies. As of December 2025, the fund had committed $85 million, representing around 60% of its total investable capital. Current allocations are weighted towards the DRC at 47%, followed by Angola at 22%, Uganda at 17%, and Zambia at 14%. Key sectors include manufacturing, retail, beverages, food processing, and pharmaceuticals.

Over the past 15 years, XSML Capital has invested in more than 100 SMEs across Central, East, and Southern Africa. By the end of 2024, portfolio companies employed over 8,500 people and had created more than 4,100 jobs.