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LeapFrog’s Fund III targets $700m

Anna Lyudvig
May 15, 2019, 12:34 p.m.

Word count: 634

LeapFrog Investments has announced the largest-ever private equity fund by a dedicated impact fund manager, surging past its $600m target to reach $700m.

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LeapFrog Investments has announced the largest-ever private equity fund by a dedicated impact fund manager, surging past its $600m target to reach $700m.

The new fund invests in healthcare and financial services companies – tapping into the demand from billions of emerging consumers in Asia and Africa.

The success of the fund reflects LeapFrog’s track record of delivering both strong financial results and large-scale social impact.

Andrew Kuper, Founder and CEO of LeapFrog Investments, said: “The announcement marks an unprecedented level of commitment to independent impact investment managers, with a new fund backed by diverse best-in-class institutional investors. It also marks an important moment for responsible private equity. As our third fund and largest fund, it is a decisive demonstration that meeting the real needs of under-served people is great business.”

“Prudential’s lead investment in LeapFrog’s latest fund underscores our conviction in the power of capital-based solutions to solve the financial, social, environmental, and economic challenges of our changing world,” said Charles Lowrey, Chairman and Chief Executive Officer of Prudential Financial.

“We are pleased to partner with LeapFrog to realize the enormous potential for inclusive growth and shared prosperity in emerging Asia and Africa.”

LeapFrog’s new fund has already made five investments: WorldRemit, a global digital remittances provider globally; NeoGrowth, which provides innovative unsecured-credit products to micro, small and medium enterprises across India; Goodlife Pharmacy, the largest provider of healthcare services in East Africa; Pyramid Pharma, a distributor of medicines and diagnostic and surgical equipment across Africa;  and Ascent Meditech, a company that manufactures and delivers orthopaedic products across India that help avoid crippling pain.

This is LeapFrog’s third fund with investors including many of the world’s leading insurers, pensions and asset managers, development finance institutions, foundations and family offices.

Most backers are repeat investors with LeapFrog, including: Admiral, AIG, AXA XL, Everest Re, Hannover Re, Prudential Financial, QBE and Zurich; Ascension Capital, Pinebridge and TIAA-Nuveen, Kempen, Partners Group Impact, Stiftung Abendrot and SBZ as well as Christian Super and HESTA; DEG, IFC, Proparco; also a board-approved commitment from the OPIC; Merck & Co and foundations including PactWorld, the Ford Foundation and the Rockefeller Foundation.

“OPIC is committed to supporting breakthrough investment in developing countries. LeapFrog is a compelling fund manager and strong partner for deploying capital into successful companies to bring large-scale impact,” concluded David Bohigian, Acting President and CEO of OPIC.

“We are very pleased to be a lead investor in this new fund for emerging markets in Asia and Africa. This will expand the reach of development finance through investments in innovative portfolio companies that will serve millions of new consumers in the developing world,” he said.

“We want to substantially increase impact investing for a sustainable world – so we are delighted to be supporting the largest equity fund by a dedicated impact manager in emerging markets,” said Philippe Le Houérou, CEO of IFC, the private sector arm of the World Bank Group and a lead investor in the new fund.

“By investing in this fund, IFC is expanding our long-standing partnership with LeapFrog and together we will drive this investment toward financial inclusion and health access. We want more and more investors who are looking to do well while also doing good.”

The new fundraise will take LeapFrog to $1.6bn of total commitments, sustaining its position as the largest private equity manager entirely dedicated to impact investing.

“As pioneers of commercial impact investing, our goal over the last decade has been to build truly differentiated investment vehicles, that present a compelling opportunity for top-tier investors to access emerging markets – and fulfill their financial and purpose objectives,” said Nick Moon, LeapFrog Partner and Head of Investor Relations.

“We have been delighted with the enthusiasm for this latest fund from longstanding as well as first-time investors,” he added.


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