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LeapFrog Investments is a $135 million profit-with-purpose private equity fund. It invests in high-growth companies in Africa and Asia that serve emerging consumers with financial tools, including insurance and savings.
LeapFrog targets financial as well as social return. LeapFrog recently won the Investor of the Year award from Business Insider and the Sustainable Investor of the Year special commendation award from the Financial Times and IFC. Its President and Founder, Dr Andrew Kuper, was names Ernst & Young’s National Entrepreneur of the Year.
At $12m, LeapFrog’s average deal size is approximately eight times the industry average. LeapFrog’s thesis holds that it is necessary to match the size of the problem – 4 billion people in poverty – with the size of the solution: a financial model, team, and community operating at the level and scale necessary to make a dent on mass poverty. LeapFrog’s goal is to provide capital and expertise to businesses that scale, reach vast numbers of low-income people, and can mobilize the trillions of dollars in the capital markets.
Launched with President Bill Clinton in September 2008, the fund invests amounts between $5–$20 million in target companies, with a 4-7 year time horizon. Investors in LeapFrog’s investment fund include global banks such as JP Morgan, the European Investment Bank and Triodos; leading funds such as Soros EDF, Omidyar Network, and Calvert; global reinsurers and pension funds such as SCOR, Haverford, and TIAA-CREF; and leading development financiers including FMO, IFC, KfW, Proparco and Accion Frontier Investments Group.
LeapFrog invests in companies to help them attain scale, profitability, and impact. Investments include:
AllLife: LeapFrog invested $11.2 million in AllLife, the only South African insurer of people living with HIV/AIDS. Prior to AllLife, many HIV patients in South Africa would be told their lives were uninsurable. But by linking insurance cover to regular medical visits, periodic testing and treatment protocols, AllLife helps people manage their health and ensures that each risk is manageable, measurable and insurable.
Apollo: LeapFrog invested $14 million in Apollo, an insurance group operating in Kenya, Tanzania, and Uganda. It offers life and non-life insurance products through APA Insurance and Apollo Life.
Shriram: LeapFrog invested $15 million in Shriram CCL, which distributes low-cost high-quality financial services including insurance, savings, and investment products to low-income Indians.
Express Life: LeapFrog invested $5.5 million in Express Life Insurance Company, a Ghanaian company providing life insurance and savings.
Mahindra: LeapFrog invested $15 million in Mahindra Insurance Brokers Ltd., with the aim of developing and expanding the firm’s insurance broking business in rural areas of India.
ARMLife: LeapFrog invested $7.5m in ARMLife (previously CrystaLife), in a strategic partnership with Asset and Resource Management Co., Nigeria’s largest non-bank financial company and ARMLife’s majority stakeholder.
Bima: LeapFrog invested $4.3 in Bima, a insurance distribution company providing low-price cover via mobile networks in Africa and Asia, and adding 400,000 new subscribers a month.