LeapFrog Investments secures $1.15 billion in largest fund to date

Impact-focused private equity (PE) firm LeapFrog Investments closed its fourth fund (Fund IV), raising $1.02 billion in commitments and designated co-investments and surpassing its initial target of $1 billion, according to a company statement.

 

With an additional partnership with Prudential Financial, it has raised over $1.15 billion in its latest fundraising cycle, the largest in its history.

 

The fund, comprising $808 million in primary commitments and $210 million in pre-allocated co-investment, primarily focuses on healthcare and financial services in growth markets.

 

Initial investments from Fund IV in India include diagnostics centre Redcliffe Labs, MSME lender Electronica Finance, education finance firm Auxilo Finserve.

 

“Recent years have seen one of the most challenging fundraising cycles for private equity this century, with capital raised in 2023 the lowest in the past six years,” said Andy Kuper, founder, CEO, LeapFrog Investments.

 

“LeapFrog has been able to distinguish itself through deep local sourcing and industry insight, distinctive value creation, authentic impact management and ultimately robust results,” Kuper said.

 

Fund IV targets improving the lives of 100 million emerging consumers and producers and has already impacted 24 million, marking a 40 per cent growth since the initial investments, according to the statement.

 

The fund has also expanded its investor base, attracting commitments from new markets such as Singapore, China, Japan, Austria, Norway, Oman, and Turkey.

 

Key investors include Temasek, AIA, Prudential Financial, and development finance institutions like the European Investment Bank and the U.S. International Development Finance Corporation. Commitments also came from global asset managers such as Sumitomo Mitsui Trust Bank and Van Lanschot Kempen, among others.

 

LeapFrog Investments had earlier launched a climate investing strategy of $500 million to companies combating climate change in Africa and Asia, providing green tools and technologies to low-income people.