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LeapFrog Investments

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LeapFrog Investments
Company typePrivate company
IndustryPrivate equity, financial services,[1] alternative investments[2]
Founded2007; 17 years ago (2007)
FoundersAndrew Kuper (Founder and CEO), Gary Herbert (Co-Founder)
Headquarters
South Africa / Australia
Areas served
Africa and Asia
ServicesInvestments, Healthcare, Financial Services, Climate Solutions
Websitewww.leapfroginvest.com

LeapFrog Investments is a South African-Australian private equity firm that invests in high-growth financial services, healthcare and climate solutions companies in emerging markets in Africa and Asia.

As of 2019, LeapFrog had attracted over $2 billion USD from global investors. The firm's investments have grown at more than 24% annually over the life of the firm and its companies reach approximately 492 million consumers, primarily in Africa and Asia.[3][4][5][6]

LeapFrog was ranked by Fortune as one of the top five Companies to Change the World in 2017, the first private investment firm ever listed and made the list for a second time in 2023.[7]

History

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Foundation

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LeapFrog was founded in January 2007 by Andrew Kuper and officially launched in 2008 alongside former US President Bill Clinton, who endorsed the firm for opening new frontiers for alternative investments.[8][9]

According to The Economist, LeapFrog is a well-established impact investing firm.[10] LeapFrog has attracted over $2 billion USD from global investors, including Temasek,[11] Prudential Financial,[2] Swiss Re,[12] JP Morgan, TIAA-CREF[13] and eBay founder Pierre Omidyar's Omidyar Network.[14][15][16]

Funds & Strategy growth

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LeapFrog owns significant stakes in companies across Ghana, Kenya, Nigeria, South Africa, Thailand, Indonesia, Sri Lanka and India, among others.[17]

It raised its first fund of $135 million in 2009 to invest in insurance and related financial services companies.[18] In September 2013, LeapFrog Investments launched its second fund, raising $204 million USD initially, and in 2014 it announced the fund was oversubscribed at $400 million USD.[6] Overseas Private Investment Corporation (OPIC), the U.S. government’s development finance institution, committed to invest up to $200 million USD in December 2015, the largest investment commitment historically by OPIC to any impact fund manager.[19] In January 2016, Prudential Financial invested $350 million USD with the firm.[14]

In 2019, LeapFrog raised $700 million USD for its flagship emerging markets fund.[20] It used the funds to invest in companies including WorldRemit (now Zepz), HDBank and HealthifyMe. The fund launched with 40 institutional investors including Prudential Financial, OPIC and International Finance Corporation (IFC).[21]

In March 2021, Temasek Holdings, an investment company headquartered in Singapore, entered into a $500 million USD strategic partnership with LeapFrog. As part of the agreement, Temasek received a minority stake in LeapFrog and took a seat on its board of directors.[22] The multi-fund investment by Temasek anchors LeapFrog's future funds and provides growth capital to support the expansion of the LeapFrog team and investment capabilities across Asia and Africa.

In 2022, at COP27 in Egypt, LeapFrog launched its Climate Investment Strategy, marking a natural extension of the firm’s 15-year journey as a pioneer of impact investing.[23] The strategy states it will support companies and technologies that enable both mitigation of and adaptation to climate change by lower-income people.

Hong Kong insurer AIA allocated $200m to LeapFrog funds in 2023, described by the Financial Times as one of the largest investments into portfolios trying to meet social or environment targets such as those in the UN’s Sustainable Development Goals.[24]

LeapFrog has offices in Mauritius, Singapore, South Africa, Australia, Nairobi, Lagos and the United Kingdom.[14] In 2017, Fortune ranked LeapFrog Investments as one of the top 5 Companies to Change the World, alongside Apple and Novartis.[25]

Impact Measurement & Management

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LeapFrog consulted on the creation of the Operating Principles for Impact Management in Partnership with the IFC and World Bank in 2018.[26] The nine principles were created to set a basic market standard for impact investing and serve as a guide to deployment of capital by institutional investors. In 2019, LeapFrog became the first impact investor globally to announce the results of an independent audit of its impact against the Operating Principles for Impact Management.[27] LeapFrog was deemed an "exemplification of industry best practice" with its impact measurement and management systems assessed as reaching "an advanced level of alignment across the board for all nine of the Principles".[28] In 2023, it was again recognised as an industry leader, achieving the highest rating of Advanced across each of the principles, as assessed by independent auditor BlueMark.[29]

Leadership

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In 2018, LeapFrog formed its Global Leadership Council. Members include Julia Gillard AC, former Prime Minister of Australia;[30] Carole Wainaina, former COO of Africa50; Simon Israel, former Chairman of Singtel; Jaime Augusto Zobel de Ayala, Chairman and CEO of Ayala Corporation;[31] Bharat Doshi, former Director of the Reserve Bank of India;[32] David Gonski, former Chairman of ANZ Banking Group;[33] Steve Howard, Vice Chairman of Sustainability at Temasek; and Roger Ferguson, former President and CEO of TIAA and former Vice Chair of the US Federal Reserve.

In 2022, former McKinsey global managing partner Dominic Barton joined as LeapFrog chairman.[34]

See also

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References

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  1. ^ Rosenberg, Tina (6 June 2012). "The Microinsurance Revolution". The New York Times. Retrieved 16 February 2016.
  2. ^ a b Clark, Simon (22 January 2016). "Prudential Financial to Invest $350 Million in African Insurers". Wall Street Journal. Retrieved 16 February 2016.
  3. ^ "LeapFrog companies reach 5% of the world's population". LeapFrog Investments. 2023-06-19. Retrieved 2023-07-10.
  4. ^ "HK insurer AIA commits $200m to Temasek-backed impact fund manager LeapFrog". DealStreetAsia. Retrieved 2023-07-10.
  5. ^ "How an investment fund fights poverty in Africa, Asia". European Investment Bank. Retrieved 2024-02-21.
  6. ^ a b Cranston, Stephen (24 October 2013). "Leapfrog Investments raises second fund". Financial Mail. Retrieved 16 February 2016.
  7. ^ "World-Changing Investors". Fortune. Retrieved 2024-02-21.
  8. ^ Will Smale (January 23, 2017). "Why Bill Clinton helped a 33-year-old build a $1bn firm". BBC. Retrieved February 16, 2017.
  9. ^ Chassany, Anne-Sylvaine (8 September 2014). "LeapFrog Attracts $400 million with Chance to do Good". Financial Times. Retrieved 16 February 2016.
  10. ^ ""Impact investing" inches from niche to mainstream". The Economist. January 5, 2017. Retrieved January 20, 2017.
  11. ^ Flood, Chris (2021-03-09). "Temasek commits $500m to impact investing specialist LeapFrog". www.ft.com. Retrieved 2021-06-11.
  12. ^ Ehis Okpamen (October 8, 2014). "Leapfrog sells minority stake in local insurer to Swiss Re". Ventures Africa. Retrieved January 20, 2017.
  13. ^ Jessica Pothering (December 30, 2014). "This Investment Firm Is Insuring Families' Rise Out of Poverty". Entrepreneur. Retrieved February 16, 2017.
  14. ^ a b c "LeapFrog Investments Snags $500 million from Prudential for Fintech in Africa". Australian Financial Review. 24 January 2016. Retrieved 16 February 2016.
  15. ^ Saldinger, Adva (18 December 2015). "Impact investing firm breaks a billion". Devex Impact. Retrieved 16 February 2016.
  16. ^ Sirimanna, Bandula. "Soros presence seen boosting more foreign investment". Sunday Times. Retrieved 16 February 2016.
  17. ^ Renee Bonorchis (26 February 2015). "LeapFrog Buys $25 Million Stake in AFB Mauritius in Fourth Deal". Bloomberg Business. Retrieved 16 February 2016.
  18. ^ Kannan, Shilpa (29 September 2011). "Could impact investing help India's poor?". BBC. Retrieved 16 February 2016.
  19. ^ "US Govt's OPIC commits $200 million in LeapFrog Investments". Business Standard. 11 December 2015. Retrieved 16 February 2016.
  20. ^ "LeapFrog Investments closes $700 million fund for healthcare and financial services". Impact Alpha. 2019-05-10. Retrieved 2021-06-11.
  21. ^ Singh, Preeti (2019-05-09). "LeapFrog hauls in $700m for third fund". Private Equity International. Retrieved 2021-06-11.
  22. ^ Szkutak, Rebecca. "Investor LeapFrog Secures $500 Million Commitment From Temasek To Anchor Multiple Impact Funds". Forbes. Retrieved 2021-06-11.
  23. ^ "LeapFrog launches Climate Investment Strategy, appoints new partner". VCCircle. Retrieved 2023-04-23.
  24. ^ Flood, Chris (2023-06-06). "Hong Kong insurer AIA invests $200mn into impact funds". Financial Times. Retrieved 2023-07-10.
  25. ^ "Fortune Change the World 5 LeapFrog Investments". Fortune. 2017. Retrieved 30 October 2017.
  26. ^ "Investing for Positive Impact: What is Needed to Scale Up". World Bank Live. 2018-09-21. Retrieved 2021-06-11.
  27. ^ "LeapFrog Investments backs IFC's 'operating principles for impact management'". Impact Alpha. 2018-10-15. Retrieved 2021-06-11.
  28. ^ Mirchandani, Bhakti. "Finally A Way To Assure Sustainability And Impact! Vornado, Etsy, And LeapFrog Lead The Charge". Forbes. Retrieved 2021-09-02.
  29. ^ "BlueMark Practice Leaderboard". BlueMark. Retrieved 2023-07-10.
  30. ^ "Julia Gillard joins impact investor LeapFrog". Australian Financial Review. 2019-11-05. Retrieved 2021-06-11.
  31. ^ "LeapFrog adds former Aus PM, Singtel and Ayala execs to advisory council". DealStreetAsia. Retrieved 2021-06-11.
  32. ^ "Former CFO of Mahindra Group Bharat Doshi Appointed for LeapFrog Investment's Global Leadership Council". BW people. Retrieved 2021-06-11.
  33. ^ "Why David Gonski's next big move is a win-win business model". Australian Financial Review. 2020-10-20. Retrieved 2021-06-11.
  34. ^ "Dominic Barton, former McKinsey head, joins LeapFrog as Chairman". LeapFrog Investments. 2022-07-20. Retrieved 2023-07-10.
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