In backing education provider Institut Aurora, XSML Capital, the Amsterdam-headquartered private equity fund manager, is making its maiden investment for its Africa Rivers Fund. The fund, which has a hard cap of $65 million, held a $45 million first close in February this year, attracting commitments from a number of development finance institutions.
The deal is a follow-on investment for XSML, which originally invested in Institut Aurora through its first fund, the Central Africa SME Fund, shortly after the education firm was launched in 2012. Institut Aurora offers nursery, primary and secondary education to the people of Kinshasa and the new capital will be used to support the expansion of the school’s intake from 500 pupils to a planned 1,500 pupils and build new premises.
XSML was founded in 2008 and looks to provide debt, equity and mezzanine capital to SMEs in the Central African and East African regions. The Central Africa SME Fund, which is now fully-invested, has made 32 investments across 10 sectors. Some 80% of the fund’s investments have benefited SMEs in the Democratic Republic of Congo with the balance located in the Central African Republic. African Rivers Fund will continue to target opportunities in these two countries as well as in Burundi, Republic of Congo and Uganda.