The International Finance Corporation (IFC) has announced its strategic investment in a new fund managed by LeapFrog Investments, a prominent private equity group committed to impact investing in emerging markets. This partnership aims to enhance the accessibility of growth capital for rapidly expanding health and financial services firms while fostering job creation in Africa, South Asia, and Southeast Asia.
IFC is injecting $50 million in equity into the LeapFrog Emerging Consumer Fund IV LP. This fund is geared towards securing $1 billion in commitments, marking LeapFrog’s most substantial offering to date. IFC’s investment in this fund is bolstered by an additional $50 million, enabling IFC to selectively co-invest alongside the fund in LeapFrog’s portfolio companies.
The fund will concentrate on nurturing enterprises in the healthcare and financial services sectors, facilitating their transition towards digital solutions and the introduction of new products tailored for underserved segments of the population. Furthermore, IFC and LeapFrog are set to collaborate on enhancing gender diversity at the fund manager level and among the companies in which the fund will invest.
Andy Kuper, Founder and CEO of LeapFrog, expressed enthusiasm about the deepening collaboration with IFC, highlighting their shared vision of generating both social and environmental impact alongside strong financial returns in emerging markets.
“The project will support private sector growth in Africa and Asia, bridge the investment gap in healthcare in emerging markets, and further accelerate financial inclusion across these regions,” stated William Sonneborn, IFC’s Global Director of Disruptive Technologies, Creative Industries, and Funds.
This strategic initiative, driven by IFC, marks the third engagement with LeapFrog Investments, following previous investments in LeapFrog’s first and third funds. In addition to their fund commitments, IFC has already allocated $64 million to five companies supported by LeapFrog’s funds in Africa and Asia, notably MedGenome, the largest genomic medicine company focused on emerging markets, and HDBank, a fast-growing Vietnamese financial institution.
IFC’s involvement in this new fund aligns with its commitment to stimulating private equity investment in emerging markets. The collaboration with partners such as the Singaporean sovereign wealth fund Temasek, global insurance strategists like AIA and Prudential Financial, and global asset managers, is anticipated to pave the way for greater competitiveness and attractiveness in Africa and Asia’s private equity markets. This landmark initiative serves as a testament to the potential of investing in businesses that not only generate market returns but also contribute to solving pressing social issues.
