Temasek, an investment company headquartered in Singapore, has committed US$500 million into impact investment group LeapFrog Investments in form of a multi-fund investment by Temasek to anchor LeapFrog’s future funds in exchange for a minority stake in LeapFrog.
Temasek’s funding will also provide growth capital to support the expansion of the LeapFrog team and investment capabilities across Asia and Africa. LeapFrog will remain independent but Temasek will take a non-executive seat LeapFrog’s Management Board.
In a statement, Benoit Valentin, Head, Impact Investing, at Temasek, said, “There is an urgent and pressing need to address the critical social and environmental challenges that the world is facing. We believe in the potential of impact investing to unlock the capital to meet these challenges. Our partnership with LeapFrog, with its focus on serving underserved markets, underscores Temasek’s commitment to investing for impact, and the contributions these investments make towards shaping a better world for our communities.”
The partnership will see LeapFrog having received over USD $2 billion from global institutional investors since inception. Across LeapFrog’s four private equity funds, its companies have grown on average at 30 per cent per year. LeapFrog companies now reach 212 million people with healthcare or financial services, and directly provide employment to over 130,000 people.
In 2014, LeapFrog Investments acquired a $US18.7 million majority stake in Kenya’s Resolution Insurance, through its holding company, Resolution Health East Africa Limited. LeapFrog has investments in insurance underwriters and distributors in countries such as Ghana, Nigeria, South Africa and India. The group’s portfolio of companies currently reaches over 22 million people across 16 countries.
Two years ago, LeapFrog Investments raised $700m to reach 700 million consumers in emerging markets. The new fund invests in healthcare and financial services companies – tapping into the demand from billions of emerging consumers in Asia and Africa.
Dr Andy Kuper, Founder and CEO of LeapFrog, explained, “When we launched LeapFrog, the impact industry did not exist, but we believed that Profit with Purpose was the future of business and investment. For almost 15 years, we have worked to build a values-driven firm, co-creating a thriving industry that now stands at $715 billion and is projected to grow to up to $26 trillion. Through this landmark commitment, Temasek joins in our vision to build an enduring and exemplary investment institution. We will continue to open the gates of the capital markets to purpose-driven businesses.”
LeapFrog has scaled market-leading and digital companies that have then been sold to the likes of Prudential Plc, Allianz X, AXA-XL, Swiss Re, Fidelity’s Eight Roads and Standard Chartered. Among its current companies are WorldRemit, the fast-growing global digital remittance provider, GoodLife, one of the largest pharmacy chains and healthcare providers in Africa, and BIMA, the digital insurance and tele-health provider across global growth markets.
Founded in 2007, LeapFrog’s companies now reach 212 million people across 35 countries with healthcare or financial services. LeapFrog companies have also grown on average at 30% annually from the time of investment. They now provide jobs and livelihoods to over 130,000 people. Inspired by LeapFrog’s strategy of Profit with Purpose, LeapFrog will have raised over USD $2bn from global institutional investors. LeapFrog invests in exceptional businesses in Africa and Asia, partnering with their leaders to achieve leaps of growth, profitability and impact.