IFC Invests $50 Million in LeapFrog's Impact Fund for Emerging Markets Growth
The International Finance Corporation (IFC), a part of the World Bank Group, has invested $50 million in a new fund by LeapFrog Investments, a leading private equity group dedicated to impact investing in emerging markets.
The fund aims to enhance access to growth capital for rapidly expanding health and financial services companies, fostering job creation in Africa, South Asia, and Southeast Asia.
LeapFrog focuses on healthcare, financial services, and climate solutions in high-growth global markets, achieving an average annual growth rate of 24%.
Their companies presently impact 392 million people across 30 countries.
The fund will prioritize digital solutions and new product offerings in healthcare and financial services to reach underserved populations.
IFC, a prominent member of the World Bank Group and a major player in global development focusing on the private sector within emerging markets, is set to inject a substantial sum of US$50 million in equity into LeapFrog Emerging Consumer Fund IV LP.
In this significant financial move, IFC joins forces with notable entities, including the Singaporean sovereign wealth fund Temasek, strategic investors in the global insurance sector such as AIA and Prudential Financial, and prominent global asset managers like Van Lanschot Kempen.
IFC's financial involvement doesn't stop at the initial equity investment.
This marks IFC's third collaboration with the fund manager, building upon previous investments of US$20 million in LeapFrog’s inaugural fund and a substantial US$45 million in its third fund.
This investment is part of the fund's ambitious target to secure commitments amounting to a colossal US$1 billion, marking the most significant offering from LeapFrog thus far.
Additionally, IFC aims to improve gender diversity within the fund manager and the fund's invested companies.
Andy Kuper, founder and CEO of LeapFrog, appreciates the strengthened partnership with IFC, emphasizing their shared goal of achieving impactful social and environmental changes alongside financial growth.
William Sonneborn, IFC’s global director of disruptive technologies, creative industries, and funds, sees the project as a boost to private sector growth in Africa and Asia, addressing investment gaps in healthcare and advancing financial inclusion in these regions, ultimately attracting commercial investors to the emerging markets.
Tom Jackson / Disrupt Africa