Grace Ashiru
IFC, the International Finance Corporation, has committed a $50 million equity investment to support fast-growing health and financial services companies across Africa, South Asia, and Southeast Asia. This investment is channeled through a new fund managed by LeapFrog Investments, a prominent private equity group dedicated to impact investing within emerging markets.
LeapFrog Investments focuses its investments on rapidly expanding international markets, specifically targeting companies involved in healthcare, financial services, and sustainability solutions. These enterprises deliver meaningful social impact and maintain robust profitability, with an impressive average annual growth rate of 24%. Presently, LeapFrog’s portfolio companies operate in 30 countries, collectively impacting the lives of 392 million individuals.
IFC, a member of the World Bank Group and a leading global development institution focused on the private sector in emerging markets, will provide a $50 million equity investment to LeapFrog Emerging Consumer Fund IV LP, the largest offering by LeapFrog to date. This investment and contributions from international asset managers like Van Lanschot Kempen and the Singaporean sovereign wealth fund Temasek strengthen IFC’s presence in the global insurance sector.
The additional $50 million injection will augment IFC’s existing investment in the fund, allowing IFC to participate alongside the fund in selected Leapfrog portfolio businesses. This marks the third collaboration between IFC and LeapFrog, following previous investments of $20 million in LeapFrog’s first fund and $45 million in their third fund.
Andy Kuper, the founder and CEO of LeapFrog, stated, “We are thrilled to deepen our partnership with IFC, which shares our vision to create significant social and environmental impact while achieving strong financial returns in growing markets.”
“IFC’s consistent support across various fund vintages and as a dedicated co-investor is a robust endorsement of LeapFrog’s exceptional team and our Profit with Purpose approach to accessing opportunities in Africa, South Asia, and Southeast Asia. Together, we have a proven track record of identifying, establishing, and realizing profitable results from mission-driven enterprises. We look forward to collaborating through this new fund for the next ten years.
According to William Sonneborn, the global director of disruptive technologies, creative industries, and funds at IFC, this project will promote private sector growth in Asia and Africa, address the healthcare investment gap in emerging economies, and accelerate financial inclusion across these regions.
In addition, IFC and LeapFrog have joined forces to promote gender diversity among fund managers and the businesses that will receive investments from the fund.
