LeapFrog Investments, a leading impact investor, is poised to launch its fourth fund, aiming to raise a substantial $1 billion to fuel growth in emerging markets, with a particular focus on Africa. The fund, aptly named Emerging Consumer Fund IV, is slated for its final close in February 2024.
The firm, renowned for its focus on healthcare and financial services, has garnered significant support from prominent global institutions. The European Investment Bank (EIB) and the International Finance Corporation (IFC) have committed $60 million and $50 million respectively, demonstrating their confidence in LeapFrog’s investment strategy.
Furthermore, leading financial institutions like Prudential Financials and AIA Group have contributed significantly to multiple LeapFrog funds, underscoring the firm’s strong track record. Temasek, a prominent Singapore-based investment company, has also shown its commitment by pledging $500 million to LeapFrog’s funds, including the current initiative.
LeapFrog intends to strategically deploy its capital, investing between $30 million and $70 million in 18-20 high-growth companies across emerging markets.
The IFC has indicated that approximately 40% of the fund will be directed towards supporting financial services and healthcare organizations in Africa, recognizing the critical role these sectors play in driving economic and social development.
LeapFrog’s investment focus within financial services encompasses digital financial services, banking and credit solutions, wealth management, and life insurance. In the healthcare sector, the firm targets companies operating in digital health, single-specialty healthcare providers, retail pharmacies, wellness and chronic care management, medical device manufacturing and distribution, and diagnostics.
Since the launch of Fund IV in 2022, LeapFrog has already made strategic investments in several promising companies, including Sun King, Jumo in South Africa, Interswitch in Nigeria, Goodlife Pharmacy in Kenya, and Pyramid Group, a leading distributor of orthopedic and cardiac equipment.
Daniel Stacey, Global Head of External Affairs at LeapFrog Investments, highlighted the firm’s commitment to empowering low-income consumers by improving their access to essential services.
“Over the past 15 years, LeapFrog Investments has been dedicated to improving the lives of low-income consumers across emerging markets,” stated Stacey. “While our initial focus was on financial inclusion, we have expanded our scope to encompass the healthcare sector and are committed to exploring further opportunities in these critical areas.”
