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Fund geography
Emerging countries (256) / Africa (127) / Middle Africa (17) / Central African Republic (2)
The African Rivers Fund is an investment fund with a target of USD 50 million with a focus on investing in SMEs in Central Africa. The investment strategy of the African Rivers Fund is to take advantage of untapped investment opportunities in Central Africa by investing risk capital in sustainable growing companies with the aim to generate attractive risk-adjusted returns to investors. This will be achieved by creating a balanced portfolio of income-generative and high-growth SME companies. ARF will be able to tap into the many opportunities that we see in the range from UDSD 250K up to USD 5 milion in Central Africa. Focus countries are DRC, Congo-Brazzaville and Uganda covering a population of over 120 million with additional target countries CAR and Burundi.
Asset class
Fund status
Fund style
Financial description
ARF targets a 20-25% gross return on its investments. The fund provides to SMEs a combination of equity and mezzanine financing generating cash flow and cash yield during the investment and holding period of the Fund. From our experience with the Central African SME Fund (CASF), we expect around 20% of the portfolio exposure to be in equity and around 80% of the portfolio exposure to be held in debt instruments with or without revenue sharing features. The debt portfolio is targeted to generate around 15% gross return and has an expected average duration of 3-4 years. The equity portion of our portfolio is targeted to deliver the additional 5-10% gross return and has a longer expected holding period of at least 5 years. The current CASF fund is achieving monthly cash flow break-even after 2 years and 2 months after first close and is scheduled to return the first capital back to its investors in 2Q2013 (2 ½ years after first close).
8 years
of track record
2016
the year funded
50,000,000 USD
AUM
Interested in this fund?
Log in or create an account to request more information.
Gain a deeper and comprehensive understanding of how this fund generates positive impact in the themes and SDGs that matter to you, with insights provided by our dedicated team of expert analysts, and receive notifications about new available impact products, exciting investment opportunities, and relevant updates in the world of impact investing.
Asset manager
XSML
Headquarters location: Netherlands
Other funds managed by this asset manager: Central Africa SME 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 sexual and reproductive care, family planning and education
Free primary and secondary education
Promote policies to support job creation and growing enterprises
Increase access to financial services and markets
Key performance indicators
Fund overview
Asset manager: XSML
Product track record: Fund has 8 years of track record
Target IRR: 16%
Committed Capital: 50,000,000 USD (US Dollar)
Target return category: Risk-adjusted market-rate of return
Fund domicile: Mauritius
Product status: Closed - still investing
Style/Stage: Early Stage, Growth Stage, Mezzanine Finance
Inception year: 2016
Vintage year: 2016
Target region: Africa, Central African Republic, Emerging countries, Middle Africa
Target close date: 01/04/2017
Product term: 10 year + 2 x 1 year extension
Assets under management: 50,000,000 USD (US Dollar)
Investment size: Min: 250,000; Max: 5,000,000; Avg: 1,500,000
Co-investment policy: LPs have priority, With LPs and non-LPs
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 17
Fund investments to date exited or repaid: 0
Management fee: 3.25%
Carried interest: 20%
Hurdle rate: 6%%
GIIN Investors' Council Investment: Yes
Limited Partners / Investors: IFC, FMO, Lundin Foundation, CDC, Proparco, BIO, Dutch Good Growth Fund
Limited Partner / Investor Type: Development Finance Institution (DFI), Endowments/Foundations, Family Office, Pension Funds
Contact
E-mail: n.a.
Website: http://www.xsmlcapital.com
Phone number: +31 8 5273 6059
If you wish to have your details removed from this database please email gdpr@impactyield.com
Barthout van Slingelandt
Managing Partner
Jarl Heijstee
Managing Partner
Impact Performance
n.a.
Impact thesis
Core to the principles of the fund is the impact generated beyond financial returns. In cooperation with our existing investors, we defined an impact strategy for CASF which will be duplicated for ARF.
Next to a focus on viable businesses that generate returns, ARF aims to have an impact (“Direct Impact”) on vulnerable, low-income communities by investing the majority of funds available to:
o Generate employment in these communities to improve social and economic security;
o Improve access to goods and services for the low-income population, including:
o Provide affordable healthcare services and medicine;
o Provide affordable education;
o Improve food security and nutrition
In addition to having a Direct Impact, the Fund aims to create significant impact on the communities it operates in by addressing market failures in the economy, lowering operating costs for businesses and creating affordable goods and services for the overall population (“Indirect Impact”). The improvement of access to markets for SME suppliers, which previously was not or is insufficiently available, is part of that goal.
Impact Management
n.a.