Leapfrog, known for aligning capital with impact, is on course to making more impact
26th November, 2024
Global impact investment firm, Leapfrog Investments has secured $1.15 billion at its fourth fund (Fund IV). This figure exceeded its initial $1 billion target, marking the biggest fundraise in 15 years. This massive funding will be thrown into healthcare, financial services, and climate solutions in high-growth markets, especially Africa and Asia.
The $1.15 billion was divided into $808 million in primary commitments and $210 million co-investments. The enormity of these sums reflect strong backing from institutional investors like Temasek, Prudential Financial and the European Investment Bank.
LeapFrog also succeeded in attracting investors from new regions such as Japan, Singapore, and China, a metric that signals growing global confidence in its mission of delivering both financial returns and measurable social impact. Historically LeapFrog has raised most of its capital from US and European institutions. When it raised its fund one in 2009, it drew capital entirely from US and European institutions. Now, it has managed to reel in investors from Asia.
Investments in companies such as JUMO and Interswitch reflects LeapFrog’s strong history of investing in Africa. The firm’s investment in Sun King, an hegemon in off-grid solar energy, shows its deepening presence in Africa. Sun King has reached 118 million people across Africa and Asia, providing access to affordable solar power and significantly reducing household energy costs. It has also played a crucial role in decreasing reliance on environmentally harmful energy sources such as kerosene and diesel.
The firm’s partnership with Prudential Financial further emphasizes its commitment to the continent. As part of this collaboration, LeapFrog has allocated funds to African financial services leader Alexander Forbes in a bid to expand access to financial products in underserved markets.
Dominic Barton, Chairman of LeapFrog and Ugandan-born Canadian business executive, author, and diplomat, emphasized the firm’s commitment to building resilient economies in underserved regions. “This fund is not just about financial growth; it’s about scaling businesses that transform lives,” he said.
Armed with Fund IV, LeapFrog hopes to reach 100 million emerging consumers, adding to the 537 million people already served by its portfolio companies in 37 countries. The investment firm also continues to explore climate-focused opportunities, addressing the urgent need for sustainable solutions in emerging markets.
LeapFrog has been able to distinguish itself through its ability to align capital with impact. Delivering on its promise of “Profit with Purpose”, the firm has been able to stay at the Frontlines of the impact investment movement.
“Recent years have seen one of the most challenging fundraising cycles for private equity this century, with capital raised in 2023 the lowest in the past six years…yet, LeapFrog has been able to distinguish itself through deep local sourcing and industry insight, distinctive value creation, authentic impact management and ultimately robust results.”
“Our ability to raise this fund in one of the most challenging fundraising environments in years underscores the strength of our ‘Profit with Purpose’ model,” said Andy Kuper, Founder and CEO of LeapFrog Investments.
Fund IV has made five investments so far in businesses operating across Africa and Asia: four in the financial services sector and one in healthcare. The latest deal is an investment in Auxilo Finserve, a South Asian provider of higher education loans to students and institutions.
