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–(BUSINESS WIRE)–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.
“Today’s 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, Inc
. “We are pleased to partner
with LeapFrog to realize the enormous potential for inclusive growth and
shared prosperity in emerging Asia and Africa.”

LeapFrog has invested in 26 businesses to date. They have grown at an
exceptional rate of nearly 40 per cent 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.

This is LeapFrog’s third fund and it will once again be
oversubscribed. Most backers are repeat investors with LeapFrog. They

  • Global insurers Admiral, AIG, AXA XL, Everest Re, Hannover Re,
    Prudential Financial, QBE and Zurich
  • Leading pensions and asset managers such as Ascension Capital,
    Pinebridge and TIAA-Nuveen (USA), Kempen, Partners Group Impact,
    Stiftung Abendrot and SBZ (Europe) as well as Christian Super and
    HESTA (Australia)
  • Leading development financiers such as Germany’s DEG, IFC and France’s
    Proparco; also a board-approved commitment from the U.S.’s Overseas
    Private Investment Corporation
  • Major corporations such as Merck & Co., Inc., known as MSD outside
    U.S. and Canada, and foundations including PactWorld, the Ford
    Foundation and the Rockefeller Foundation

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.”

The fund also received strong backing from global leaders in development
finance. “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

“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.”

About LeapFrog Investments

LeapFrog invests in exceptional businesses in Africa and Asia,
partnering with their leaders to achieve leaps of growth, profitability
and impact. LeapFrog companies now reach 168 million people across 35
countries with healthcare or financial services. Over 136 million of
those individuals are emerging consumers, often accessing quality
insurance, savings, pensions, credit, medications or healthcare for the
first time. LeapFrog companies have grown on average by nearly 40 per
cent a year since investment. These companies now provide jobs and
livelihoods to over 124 thousand people. LeapFrog was recently ranked by Fortune
as one of the top five companies to change the world, alongside
Apple and Novartis. www.leapfroginvest.com


Laura Kemp-Pedersen
Chief Marketing Officer

BackBay Communications
Paul Lim
(617) 245-5311


Stephen Fishleigh
+44 203 475 7552

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