Private equity firm LeapFrog Investments has announced the close of its third emerging markets fund at USD 700 Mn, an all-time, recording-breaking private equity fund raised by a dedicated impact fund manager.
From a raise led by US-based Prudential Financial with participation from top-ranking global insurers, pensions, asset managers, development financiers, foundations and family offices, the LeapFrog Emerging Consumer Fund III surpasses the firm’s initial USD 600 Mn target, and the same vehicle’s 2014 USD 400 Mn, bringing LeapFrog’s total commitments to USD 1.6 Bn.
The Mauritius-based firm has already made five investments with the new fund, backing three African companies and two foreign firms. Global digital remittances provider WorldRemit, Nairobi-based healthcare service provider Goodlife Pharmacy, and Pyramid Pharma – a drug distributor based in Tanzania. It has also backed India’s non-banking financial company NeoGrowth, and medical products company Ascent Meditech.
LeapFrog has financially backed 25 businesses, according to CrunchBase, and has made one exit which was from India’s Magma Fincorp. With its fresh Fund III, it plans to invest in healthcare and financial services in Africa and Asia, which is a target not too far from its original investments.
It will make equity and quasi-equity fundings ranging from USD 25 Mn to USD 30 Mn, in companies mainly from Nigeria, Ghana, South Africa, Kenya, India, Indonesia, Sri Lanka, and the Philippines.
Under the leadership of Andrew Kuper, Founder, and CEO, and Nick Moon, Partner and Head of Investor Relations, LeapFrog Ventures’ investments have now reached 168 million people across 35 countries, more than 136 million of which are emerging consumers – who the World Bank Group says live below USD 10 per day.
“It is time for a better kind of capitalism,” said Andrew Kuper. “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. As our third fund and largest fund, it is a decisive demonstration that meeting the real needs of underserved people is a 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,” says Charles Lowrey, Chairman and Chief Executive Officer of Prudential Financial, Inc.