XSML

Introduction

XSML is an investment fund manager with a focus on frontier markets, particularly those in Central Africa. While building and managing funds, XSML, eXtra Small Medium Large, aims to grow small businesses into medium and large enterprises. We seek to partner with investors who share our passion for investing with impact and to help SME companies with growth capital and know-how. Our understanding of private equity coupled with an appreciation of risks and rewards through our local presence, puts us in a position to generate attractive risk adjusted returns for our investors and entrepreneurs alike.

History

XSML was founded in 2008. The managing partners have an extensive background in emerging markets in the areas of asset management, corporate and development banking and corporate restructuring. Our experience have shown that demand for finance from small and medium sized enterprises (SMEs) remains largely untapped despite increased interest in emerging markets from international investors. XSML bridges this gap between the international investors and the SMEs in
emerging markets.

In November 2010, XSML established its first fund under management, the Central Africa SME Fund, which invests in the Democratic Republic of Congo and Central African Republic. The fund focuses on providing private equity finance and management expertise to SMEs in these two frontier markets where there is no or limited finance available.

Investment Policy

XSML believes that growing a small business into a medium and large business in emerging markets generates superior returns for its investors over time. XSML realises that providing capital alone is insufficient; SMEs need expertise and guidance to achieve sustainable growth. XSML is committed to support SMEs in their development – this support is critical in enabling them to achieve their growth potential.

The giraffe is symbolic of XSML’s philosophy. As the tallest animal in the world, a giraffe is able to scan the distance to ascertain risks from afar and to reach for the best leaves on the trees. Like the giraffe, XSML believes in its ability to find the best opportunities in risky markets...."

http://xsmlcapital.com/about-us/ 

Oiko Credit

Oikocredit is a worldwide cooperative and social investor, providing funding to the microfinance sector, fair trade organizations, cooperatives and small to medium enterprises.

Loans

Over the years, we’ve developed a range of financial products that can be tailored to meet the needs of each specific partner.

We give loans instead of grants as we believe that loans are more effective for achieving economic productivity. Loans create a real business partnership based on mutual respect.

Credit lines

We provide credit lines which are generally shorter term, more flexible loan arrangements. For example, if a borrower requires working capital for a few months within a year.

Interest is paid only on the amounts drawn down at any one point. A 1% maintenance fee is paid on the total approved amount of the credit line.

Equity investments

Oikocredit has a diverse and growing portfolio of equity investments. We invest in equities for dual returns: development impact (social performance) and capital gains. Oikocredit equity investments seek to collaborate with companies that are aligned in bringing people out of poverty.

When we invest in a company, our aim is to assist that company in becoming stronger and more effective in reaching its goals to the benefit of stakeholders and intended beneficiaries. This means that Oikocredit has an active role in the governance of investee companies and makes sure that we add value to them. This includes providing advice and contacts, offering technical assistance where appropriate and making sure that the company complies with environmental, social and governance requirements.

If there is a sound balance between the company’s social, financial and environmental objectives, this usually adds to the value of the company. 

Long-term investment horizon

Our equity investments have a long-term investment horizon, are demand-driven and flexible, and can range from € 50,000 to € 5 million. We can provide equity or quasi-equity (including convertible debt) tailored to meet the needs of potential investee institutions.

Our equity partners are often looking for strong institutional shareholders which:

• share their mission and values
• bring expertise and insight to the organization
• focus on social as well as financial returns...."

http://www.oikocredit.coop/