LeapFrog Investments has announced the largest-ever private equity fund by a dedicated impact fund manager, raising US$700m.
The new fund invests in healthcare and financial services companies in Asia and Africa and aims to reach 70 million consumers in emerging markets.
Andrew Kuper, LeapFrog founder and CEO, called the announcement “an important moment for responsible private equity.” He added: “As our third fund and largest fund, it is a decisive demonstration that meeting the real needs of under-served people is great business.”
LeapFrog has invested in 26 businesses to date, which have grown at a rate of nearly 40% a year on average from time of investment. The companies reach 168 million people, most of whom are accessing quality insurance, savings, pensions, credit, remittances, medicines or healthcare services for the first time.
Investors in this third fund include global insurers, leading pensions and asset managers, corporations, foundations and development financiers.
The new fundraise will take LeapFrog to $1.6bn of total commitments, sustaining its position as the largest private equity manager entirely dedicated to impact investing.