LeapFrog Investments Secures $1.15 Billion to Champion Growth in Emerging Markets
LeapFrog Investments has successfully closed its fourth fund, raising $1.15 billion to accelerate healthcare and financial services in emerging markets.
The fund includes $808 million in primary commitments and $210 million allotted for pre-allocated co-investments. This success unfolds against the backdrop of a challenging fundraising environment, making it stand out as a powerful commitment to equitable growth.
This latest investment fund underlines LeapFrog’s commitment to innovative and impactful investments. The fund will focus on Africa and Asia, two constantly evolving regions exhibiting immense potential for scalable and sustainable economic growth.
A Powerful Coalition for Positive Impact
LeapFrog attracted a diverse group of investors for Fund IV, demonstrating the global appeal of impact investing. This captivating fund was led by cornerstone investors like Temasek, AIA, and Prudential Financial, alongside keen international development finance institutions, including the European Investment Bank and the US International Development Finance Corporation.
Further bolstering this global outlook are newly acquired investors from diverse markets, including Singapore, China, Japan, Austria, Norway, Oman, and Turkey. The involvement of these new partners underlines LeapFrog’s ambition to extend its impact investing footprint even further.
Remarkable Growth Potential
LeapFrog’s fourth fund is set to support an exciting purpose: helping 100 million emerging consumers and producers achieve greater economic prosperity. Already, the fund is having a direct impact, reaching 24 million lives – a 40% increase since initial investments commenced. It will initially focus on five companies in Africa and Asia showing promising growth, with all five investee companies reporting positive momentum in the past year.
One compelling example of LeapFrog’s progress is its backing of Africa’s Sun King, the world’s largest off-grid solar energy provider. Based in Kenya, Sun King designs, distributes, installs, and finances solar home energy systems delivering light and power to millions currently lacking reliable access to electricity.
Sun King has become a beacon of positive impact. Its solar products, including solar lights, fans, and home power systems have made a tangible difference to over 118 million individuals across Africa, offering clean and dependable energy solutions. This has resulted in estimated savings for low-income households exceeding $7.2 billion, funds previously allocated to traditional but less healthy and sustainable options like biomass, kerosene lamps, and diesel generators.
A Future Focused on Financial and Social Good
Driven by its mission to deliver both strong returns and social impact, LeapFrog has cemented its reputation as a leading force in sustainable investment. Founder and CEO Andy Kuper states, “What LeapFrog’s team has achieved in this fundraising cycle is phenomenal. We are attracting world-class institutional investors to our distinctive Profit with Purpose strategies.”
Despite challenging fundraising environments saw capital raised in 2023 dip to the lowest point in the past six years. LeapFrog has consistently delivered robust results through, as per their chairman, its “deep local sourcing and industry insight, distinctive value creation, authentic impact management, and ultimately robust results,"
Dominic Barton, Chairman at LeapFrog Investments takes it further, stating, “We will continue to build a magnet for forward-looking global investors. We are in a unique position to pursue strong returns and positively change millions of lives.”
LeapFrog’s exploration continues as Fund IV pioneers advancements in healthcare and financial services, dedicated to fostering economic resilience and prosperity. These investments are positioned to redefine impact investing, setting a new standard for success measured
– What are two examples of sectors that LeapFrog Investments focuses on?
## Interview with LeapFrog Investments: A Powerful Force for Equitable Growth
**Interviewer:** Welcome to the show today! We’re joined by a representative from LeapFrog Investments, a leading firm dedicated to impact investing.
Could you tell our viewers a bit about this latest fundraising success?
**Guest:** We’re thrilled to have closed our fourth fund, securing $1.15 billion to accelerate healthcare and financial services in emerging markets, primarily across Africa and Asia. What makes this particularly exciting is achieving this during a challenging fundraising environment, demonstrating the growing global appetite for investments that deliver both financial returns and positive social impact [[1](https://en.wikipedia.org/wiki/LeapFrog_Investments)].
**Interviewer:** $1.15 billion is a significant sum. What kinds of initiatives will this funding support?
**Guest:**
Our core mission is to empower 100 million people in emerging markets to achieve greater economic prosperity. This fund will support promising companies across Africa and Asia working in the healthcare and financial services sectors. We’re starting with five companies showing remarkable growth – all reporting positive momentum. One example is Sun King in Kenya, which provides crucial off-grid solar power solutions to millions lacking access to electricity [[1](https://en.wikipedia.org/wiki/LeapFrog_Investments)].
**Interviewer:** These are vital sectors, and it’s inspiring to see partnerships formed to address these challenges. What can you tell us about the investors backing this fund?
**Guest:** We’re incredibly proud to have attracted such a diverse group of investors for Fund IV. This includes prominent names like Temasek, AIA, and Prudential Financial, alongside international development finance institutions like the European Investment Bank and the US International Development Finance Corporation. We’ve also welcomed new partners from various countries, including Singapore, China, Japan, and others. This global coalition highlights the widespread belief in the power of impact investing.
**Interviewer:** It’s truly inspiring to witness this commitment to creating a more equitable world. Thank you for sharing these insights with us today. We wish LeapFrog Investments continued success in its mission.
