International Finance Corporation (IFC), a member of the World Bank Group, has made a $50 million equity investment in the new $1 billion LeapFrog Emerging Consumer Fund IV. This investment will support LeapFrog Investments, one of the largest private equity groups focused on impact investing in emerging markets, to improve access to healthcare and financial services in Africa, South Asia, and Southeast Asia.
Improving Healthcare and Financial Inclusion
LeapFrog Investments specializes in investing in healthcare, financial services, and climate solutions companies in high-growth emerging markets. Its portfolio companies have grown at an average of 24% per year and now serve 392 million people across 30 countries.
The new LeapFrog fund will focus on supporting healthcare and financial technology companies that improve access to services through digital solutions and new products tailored to underserved populations. This aligns with IFC’s goals of advancing development and creating opportunity.
IFC’s Third Investment with LeapFrog
IFC has invested in LeapFrog funds twice before – $20 million in the first fund and $45 million in the third fund. This latest $50 million investment represents IFC’s largest commitment to date and the largest fund raised by LeapFrog so far.
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In addition to the equity investment, IFC will provide an extra $50 million to co-invest directly in LeapFrog’s portfolio companies. This will allow IFC to participate alongside the fund in select deals.
“We are delighted to deepen our relationship with IFC, which shares our ambition to generate life-changing social and environmental impact, as well as robust financial returns, in growth markets” said Andy Kuper, founder and CEO of LeapFrog.
“IFC’s support over multiple fund vintages and as a regular co-investor constitutes a powerful endorsement of LeapFrog’s distinctive team and of our Profit with Purpose strategy for accessing opportunities across Africa, South Asia and Southeast Asia. We have established a strong and long track record with IFC, together identifying, building and realising attractive returns from purpose-driven companies. We look forward to the next 10 years of working together via this new fund.”
Attracting New Investors to Impact Funds
The LeapFrog Emerging Consumer Fund IV has attracted investment from major institutions like Singapore’s Temasek, AIA, Prudential, and Van Lanschot Kempen. IFC’s anchor investment helps demonstrate the viability of impact investing funds focused on emerging markets.
By participating, IFC aims to catalyze additional capital from other commercial investors interested in businesses that generate social impact and market-rate returns. This will boost the competitiveness and activity of Africa and Asia’s private equity markets.
Advancing Gender Diversity
As part of the investment, IFC will also work with LeapFrog to improve gender diversity at both the fund manager and portfolio company level. Ensuring women are part of business leadership is crucial for inclusive economic growth.
Supporting Private Sector Growth
William Sonneborn, IFC’s Global Director of Disruptive Technologies, Creative Industries, and Funds, said the project will accelerate private sector advancement in Africa and Asia while helping bridge healthcare investment gaps in emerging markets.
Backing purpose-driven businesses through funds like LeapFrog is a key part of IFC’s strategy to support development through private sector investment. This latest commitment highlights the strong partnership between IFC and LeapFrog in generating impact and returns.
