Development Finance

Leapfrog Breaks Impact Investing Record With $700M Emerging Markets Fund
Largest equity fund by a dedicated impact manager, targets 70 million low-income consumers
New York- May 10, 2019
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. This fund alone targets reaching 70 million emerging consumers. Investors include many of the world’s leading insurers, pensions and asset managers, development finance institutions, foundations, and family offices. The success of the fund reflects LeapFrog’s outstanding track record of delivering both strong financial results and large-scale social impact.

“It is time for a better kind of capitalism. LeapFrog was founded on a philosophy of Profit with Purpose, rejecting conventional trade-off thinking in financial markets. That has proved a winning strategy, driving strong growth and returns while changing tens of millions of lives,” said Dr. Andrew Kuper, Founder and CEO of LeapFrog Investments…

… LeapFrog has invested in 26 businesses to date. They have grown at an exceptional rate of nearly 40 percent a year on average from the time of investment. LeapFrog companies now reach 168 million people across 35 countries with healthcare or financial services. Over 136 million of those individuals are emerging consumers – defined by The World Bank as living on under $10 a day. Most are accessing quality insurance, savings, pensions, credit, remittances, medicines or healthcare services for the first time.

LeapFrog’s new fund has already made five investments: WorldRemit is the leading digital remittances provider globally. NeoGrowth provides innovative unsecured-credit products to micro, small and medium enterprises across India. Goodlife Pharmacy chain is now the largest provider of healthcare services in East Africa. Pyramid Pharma is a distributor of medicines and diagnostic and surgical equipment across Africa. And Ascent Meditech manufactures and delivers orthopaedic products across India that help avoid crippling pain. These businesses use innovative marketing or distribution via mobile phones to reach millions of customers not well-served by conventional companies…

“The Foundation is thrilled to build on its legacy in the impact investing sector by supporting LeapFrog’s latest fund,” said Dr. Rajiv J. Shah, President of The Rockefeller Foundation. “The Foundation’s investment, tied to a bespoke insurance product that underpins the Fund’s structure, epitomizes the role catalytic capital can play in accelerating impact investing and helping low-income people access financial services and healthcare.”…