LEAPFROG Investments, a leading private equity firm specialising in impact investing, has unveiled ambitious plans to raise $1bn for their Emerging Consumer Fund IV. This fund is dedicated to investments in high-growth companies operating in ‘global growth markets,’ with a particular focus on Africa. The firm anticipates concluding this fundraising in February 2024.
Notably, LeapFrog Investments has a keen interest in companies within the healthcare and financial sectors. This strategic focus aligns with their mission of supporting and improving the lives of low-income consumers in emerging markets.
The European Investment Bank (EIB) and the International Finance Corporation (IFC) have joined forces to support the Emerging Consumer Fund IV, committing $60 million and $50 million, respectively. Additionally, Prudential Financials and AIA Group have collectively contributed $500 million and $200 million to multiple funds managed by LeapFrog Investments. Singapore-based investment company Temasek also stands as a notable contributor, pledging $500 million in 2021, spanning across various funds, including the present initiative.
LeapFrog Investments envisions an initial investment range of $30-70 million in 18-20 high-growth businesses. According to disclosures from the IFC, a substantial portion, approximately 40 percent of the funding, will be channelled towards supporting financial services and healthcare organisations in Africa. The firm also has its sights set on potential investments in South and Southeast Asia.
Within the financial services sector, LeapFrog Investments focuses on companies offering digital financial services, banking, credit facilities, wealth management, and life insurance. In the healthcare realm, they express interest in areas such as digital health, single-specialty providers, retail pharmacies, wellness and chronic care management, medical device manufacturing and distribution, and diagnostics.
Since launching Fund IV in 2022, LeapFrog Investments has already invested in a variety of ventures, including Sun King, Jumo in South Africa, Interswitch in Nigeria, Goodlife Pharmacy in Kenya, and the Pyramid Group, which specialises in the distribution of orthopedic and cardiac equipment.
Daniel Stacey, the Global Head of External Affairs at LeapFrog Investments, emphasised the firm’s enduring commitment to assisting low-income consumers in elevating their living standards. While LeapFrog’s initial focus was on financial inclusion, the firm expanded its reach into the healthcare sector six years ago and has ambitious plans to continue fostering opportunities in both these vital fields.
LeapFrog Investments’ latest fundraising endeavour underlines their dedication to impact investing and their ongoing mission to uplift the socio-economic well-being of underserved communities in emerging markets.
