LeapFrog Investments intends to raise $1 billion for a new fund — Emerging Consumer Fund IV — to invest in companies in "global growth markets" such as Africa.
The private equity firm, which plans to hold its final close in February 2024, has a strong interest in healthcare and financial businesses.
The European Investment Bank (EIB) and the International Finance Corporation (IFC) have committed $60 million and $50 million to support the Emerging Consumer Fund IV.
Besides, Prudential Financials and AIA Group have contributed $500 million and $200 million, respectively, to multiple funds. Temasek, an investment company based in Singapore, pledged $500 million in 2021 to the company's funds, including the current one.
LeapFrog says it will initially invest $30-70 million in 18-20 high-growth businesses.
According to IFC disclosures, it will direct approximately 40% of the funding towards financial services and healthcare organisations in Africa. It also has investments in South and Southeast Asia on its radar.
The firm focuses on financial services companies that provide digital financial services, banking and credit, wealth management, and life insurance.
Digital health, single-specialty providers, retail pharmacies, wellness and chronic care managers, medical device manufacturing and distribution, and diagnostics are among the healthcare-related sectors in which LeapFrog is interested.
Since launching Fund IV in 2022, the firm has invested in Sun King, Jumo in South Africa, Interswitch in Nigeria, Goodlife Pharmacy in Kenya, and Pyramid Group, which distributes orthopaedic and cardiac equipment.
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According to Daniel Stacey, Global Head of External Affairs at Leapfrog, the impact investing company has spent the last 15 years assisting low-income consumers in raising their standard of living.
While the firm’s initial focus was on financial inclusion, it branched out into healthcare six years ago and plans to expand opportunities in these fields.
