LeapFrog Investments, the emerging markets fund manager with a focus on “purpose-driven” businesses, has raised $204 million for its second private equity fund.
The fund will invest in African, South Asian and Southeast Asian companies providing financial services—insurance, savings, pensions, investment products—to emerging consumers.
Investors in this first round of fundraising include leading insurers, reinsurers, banks and asset managers like MetLife, Prudential, XL Group, Achmea, PartnerRe, Swiss Re, JPMorgan Chase & Co., Christian Super and TIAA-CREF. The fund has also received backing from five of the world’s leading development finance institutions: CDC, DEG, the European Investment Bank, FMO and Oikocredit.
“The entry of these leading financial institutions indicates the increasing attractiveness of the emerging consumer segment—the millions of people eager to join the middle class but who are not there yet,” said Andrew Kuper, LeapFrog president and founder, in a statement. “There are 1.9 billion emerging consumers in LeapFrog’s target regions, and their spending power is forecast to rise from $2 trillion today to $5 trillion in the coming decade. Financial services are crucial springboards for households and businesses, but access is very limited. LeapFrog backs the best companies to serve this vast and untapped market.”
LeapFrog raised the initial capital in just eight months, tapping many investors from its first, $135 million fund—some of whom have doubled or tripled their allocations.
“We’re very focused on approaches that leverage global finance and our capabilities to address long-standing economic challenges around the world,” said Peter Scher, executive vice-president, JPMorgan Chase & Co, in a statement. “Our partnership with LeapFrog Investments is a perfect example of this effort. Leapfrog’s strategy presents a compelling investment opportunity to financially empower millions of people in historically underserved communities in Africa and Asia.”
To date, LeapFrog’s portfolio companies provide financial products to over 18 million people across 13 countries.