This milestone underscores continued investor interest in scaling small and medium-sized enterprises (SMEs) across underserved African markets.

The firm, which backs growing businesses in frontier economies, maintains a presence on the ground in Angola, the Democratic Republic of the Congo (DRC), Kenya, Uganda and Zambia.

Since the fund’s first closing in 2024, when it secured roughly $98.7 million from a group of development finance institutions and other backers, additional institutional partners and two German family offices have committed capital to ARF IV.

“Raising above our target in a difficult fundraising climate reflects strong investor confidence in our strategy of financing SMEs,” said Barthout van Slingelandt, managing partner at XSML Capital.

He emphasized the firm’s belief in the value of private credit combined with direct business support, which helps entrepreneurs expand without surrendering ownership while addressing the persistent capital gap in African markets.

XSML anticipates ARF IV will invest in more than 50 companies across several sectors. As of December 2025, the fund had already put about $85 million to work, roughly 60 per cent of total capital, with significant allocations in the DRC (47 per cent), Angola (22 per cent), Uganda (17 per cent) and Zambia (14 per cent).

These investments span manufacturing, retail, beverages, food processing and pharmaceuticals.

The fund continues a broader effort to bridge financing shortages for growth-stage businesses in Central and East Africa, a segment often overlooked by traditional banks and other financiers.