LeapFrog Investments is in the process of raising a $1 billion fund called “Emerging Consumer Fund IV” to make investments in companies operating in “global growth markets,” with a specific focus on regions like Africa. This private equity firm is set to complete its fundraising efforts in February 2024 and has a particular interest in healthcare and financial enterprises.
Notably, the European Investment Bank (EIB) and the International Finance Corporation (IFC) have committed $60 million and $50 million, respectively, to support the Emerging Consumer Fund IV. Additionally, Prudential Financials and AIA Group have allocated $500 million and $200 million, respectively, to various funds managed by LeapFrog Investments. Furthermore, Temasek, an investment company headquartered in Singapore, pledged $500 million in 2021, which includes a contribution to the current fund.
LeapFrog Investments is set to invest between $30 million and $70 million in around 18 to 20 rapidly growing businesses initially. According to information from the International Finance Corporation (IFC), approximately 40% of this funding will be channeled into financial services and healthcare organizations in Africa, with an eye on potential investments in South and Southeast Asia as well.
LeapFrog’s core focus lies in financial services companies that offer digital financial services, banking, credit, wealth management, and life insurance. In the healthcare sector, the firm is interested in digital health, single-specialty providers, retail pharmacies, wellness and chronic care management, medical device manufacturing and distribution, as well as diagnostics.
Since the launch of Fund IV in 2022, LeapFrog Investments has already made investments in several businesses, including Sun King, Jumo in South Africa, Interswitch in Nigeria, Goodlife Pharmacy in Kenya, and Pyramid Group, which specializes in the distribution of orthopedic and cardiac equipment.
According to Daniel Stacey, who serves as the Global Head of External Affairs at Leapfrog, the impact investing company has dedicated the last 15 years to aiding low-income consumers in improving their living standards. Initially, their primary focus was on promoting financial inclusion, but they expanded into the healthcare sector six years ago and have intentions to further expand opportunities in both financial services and healthcare.
In essence, LeapFrog Investments is actively involved in investing in high-growth businesses, particularly in Africa, with a significant portion of their funds dedicated to financial services and healthcare ventures. Their goal is to create positive societal impact by enhancing the well-being of low-income consumers.
