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Central Africa SME Fund

Netherlands

Last updated 11 May 2020, by Impactyield.

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Central Africa SME Fund (CASF) is an investment fund investing in small and medium-sized enterprises (SMEs) in the Democratic Republic Congo (DRC) and the Central African Republic (CAR). The Fund believes in achieving sustainable economic development by encouraging entrepreneurship in the fast growing markets of DRC and CAR. Currently, many opportunities in these countries remain unexploited due to the lack of risk capital and support. The multiplier impact of such entrepreneurial endeavours creates jobs and income. In most cases, entrepreneurs create businesses with regional growth prospects. The Central Africa SME Fund is a US$ 19m fund. Current investors are: IFC, FMO and Lundin Foundation. 80% of the fund will be invested in DRC and 20% in CAR. The fund provides risk capital to ca. 30 companies with an investment size in the range of US$ 100k to max US$ 1 mln.



Financial description

The target gross IRR for the Fund's overall portfolio is 25 per cent per annum, and the target net IRR to its investors is 16 per cent per annum in USD terms, net of fees, expenses and carried interest.Hurdle rate is 4%.

14 years

of track record

2010

the year funded

25,000,000 USD

AUM

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Asset manager

XSML

Website

Headquarters location:

Other funds managed by this asset manager: African Rivers Fund

SDG goals

SDG targets

Equal rights to ownership basic services technology and economic resources

Universal access to safe and nutritious food

Universal access to modern energy

Increase global percentage of renewable energy

Expand and upgrade energy services for developing countries

Full employment and decent work with equal pay

Increase access to financial services and markets

Key performance indicators

Fund overview

Asset manager: XSML

Product track record: Fund has 14 years of track record

Target IRR: 16%

Committed Capital: 19,190,000 USD (US Dollar)

Target return category: Risk-adjusted market-rate of return

Fund domicile:

Product status:

Style/Stage: ,

Inception year: 2010

Vintage year: 2011

Target region: , , ,

Target close date: 01/11/2015

Product term: 10 year term

Assets under management: 25,000,000 USD (US Dollar)

Investment size: Min: 100,000; Max: 500,000; Avg: 350,000

Co-investment policy: ,

Currency of investments:

Currency for fund / product figures:

Fund investments to date: 32

Fund investments to date exited or repaid: 4

Management fee: 4.25%

Carried interest: 20%

Hurdle rate: 4%%

GIIN Investors' Council Investment: Yes

Limited Partners / Investors: IFC, FMO, Lundin Foundation

Limited Partner / Investor Type: Development Finance Institution (DFI), Endowments/Foundations, Family Office, Other Institutional Investors

Contact

E-mail: n.a.

Website: http://www.xsmlcapital.com

Phone number: 31852736059.00

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Impact Performance

n.a.

Impact thesis

SMEs are the backbone of economies, worldwide. SMEs represent the dominant form of business organization worldwide, representing a total of 95% to 99% of enterprises. OECD and other studies show that SMEs account for two-thirds of private sector development; they are the primary source of job creation. SMEs are underserved by financial products. The private sectors of many emerging economies today are hindered by a "Missing Middle". Investors dedicate most of their efforts to either large corporations of over 500 employees or very small businesses with (less than) five employees; between these two extremes lies the small- and medium-sized enterprise (SME) sector with businesses that employ between 10 and 100 people. SMEs are often seen as being too minute to serve as significant drivers of economic growth, yet too large to benefit from microfinance institution schemes such as joint-liability programs

Impact Management

n.a.

Financial benchmark

Term Description:

Keywords