Dutch fund manager XSML have announced the final close of $19 million of their Central Africa SME Fund (CASF) after two existing investors, Dutch DFI FMO and Lundin Foundation, increased their commitment.
XSML’s CASF invests in the Democratic Republic of Congo (DRC) and the Central African Republic (CAR), with an 80/20 portfolio split. Their deal sizes range from $100 to $500,000.
Analysts say Lundin and FMO are familiar with XSML’s track record, so the recent rebel take-over in CAR appears to have been a deterrent.
In terms of the number of deals, XSML was one of the most active PE investors in 2012, which is especially noteworthy since they operate in a challenging business environment.
However, on the flip side, this also means that they have less competition from fellow PE funds – in more obvious PE target countries like Kenya, this is becoming an issue.
So far, CASF has made nine investments in DRC and three in CAR.