To help fast-growing health and financial services firms in Africa, South Asia, and Southeast Asia gain access to growth capital and support the creation of new jobs, IFC has made an equity investment of US$50 million in a new fund by LeapFrog Investments, one of the largest private equity groups dedicated to impact investing in emerging markets.
In fast-growing international markets, LeapFrog invests in companies offering healthcare, financial services, and sustainability solutions.
Its businesses generate distinctive impact and solid profits while expanding by an average of 24% annually. In 30 countries, LeapFrog businesses today reach 392 million people.
LeapFrog Emerging Consumer Fund IV LP, the largest offering by LeapFrog to date, will receive a US$50 million equity investment from IFC, a member of the World Bank Group and the largest global development institution focused on the private sector in emerging markets.
Along with international asset managers like Van Lanschot Kempen and the Singaporean sovereign wealth fund Temasek, IFC is an investor in the global insurance sector.
The additional US$50 million will be added to the fund’s investment from IFC, enabling IFC to participate alongside the fund in Leapfrog portfolio businesses on a selected basis.
Following investments of $20 million in LeapFrog’s first fund and $45 million in LeapFrog’s third fund, this is their third collaboration with the fund manager.
Andy Kuper, the founder and CEO of LeapFrog, said, “We are delighted to deepen our relationship with IFC, which shares our ambition to generate life-changing social and environmental impact, as well as robust financial returns, in growth markets.”
“IFC’s support over numerous fund vintages and as a consistent co-investor is a strong validation of LeapFrog’s unique team and of our Profit with Purpose strategy for gaining access to opportunities in Africa, South Asia, and Southeast Asia. Together, we have a proven track record of locating, establishing, and realizing profitable returns from purpose-driven businesses. Through this new fund, we anticipate working together for the ensuing ten years.
The project, according to William Sonneborn, global director of disruptive technologies, creative industries, and funds at IFC, will assist private sector growth in Asia and Africa, close the healthcare investment gap in emerging economies, and speed up financial inclusion throughout these regions.
“The project will be one of the largest emerging markets-focused funds and will attract other commercial investors to this market segment. It will help boost the competitiveness of Africa and Asia’s private equity markets and demonstrate the attractiveness of investing in businesses that help solve large social problems all while generating market returns” Sonneborn said.
By assisting firms in implementing digital solutions and introducing new products that could potentially reach underserved areas of the public, the most recent fund will concentrate on expanding enterprises in the healthcare and financial services industries.
Additionally, IFC and LeapFrog will collaborate to increase gender diversity among fund managers and the businesses the fund will invest in.
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