LeapFrog Raises $204M Second Fund

Sep 9 2013 | 8:59am ET

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.
 


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.