IFC contributes $50 M to new LeapFrog fund to support health & financial service-industries in Africa
In order to increase the fast-growing health and financial services firms’ access to growth capital and support job creation in Africa, South Asia, and Southeast Asia, IFC has made a US $50 million equity investment 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 environmental solutions. Its businesses generate distinctive impact and solid returns while expanding by an average of 24% annually. In 30 countries, LeapFrog businesses now 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 invest alongside the fund in Leapfrog portfolio companies on a selective 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.
By assisting businesses adopt digital solutions and introduce new products that can reach underserved segments of the population, the most recent fund will concentrate on expanding businesses 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.
“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” said Andy Kuper, founder and CEO of LeapFrog.
“IFC’s support over multiple fund vintages and as a regular co-investor constitutes a powerful endorsement of LeapFrog’s distinctive team and of our Profit with Purpose strategy for accessing opportunities across Africa, South Asia and Southeast Asia. We have established a strong and long track record with IFC, together identifying, building and realising attractive returns from purpose-driven companies. We look forward to the next 10 years of working together via this new fund.”
The project, according to William Sonneborn, global director of disruptive technologies, creative industries, and funds at IFC, will support private sector growth in Asia and Africa, close the healthcare investment gap in emerging markets, 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,” he said.
