Impact-focused investment firm LeapFrog Investments has announced that it has raised over $1.15 billion for its flagship social impact strategy, including reaching commitments of $1.02 billion for its fourth and largest fund (Fund IV), which aims to reach 100 million lower-income people in growth markets with healthcare or financial tools, ahead of the fund’s $1 billion target.

Launched in 2008, LeapFrog invests in businesses in emerging markets in Asia and Africa, and is involved in areas such as healthcare, financial services and climate solutions, along with other businesses in high-growth global markets.

Andy Kuper, founder and CEO at LeapFrog Investments, said:

“What LeapFrog’s team has achieved in this fundraising cycle is phenomenal, attracting world-class institutional investors, many from new markets, to our distinctive Profit with Purpose strategies. Recent years have seen one of the most challenging fundraising cycles for private equity this century, with capital raised in 2023 the lowest in the past six years. Yet LeapFrog has been able to distinguish itself through deep local sourcing and industry insight, distinctive value creation, authentic impact management and ultimately robust results.”

To date, Fund IV has invested five companies in Asia and Africa, potentially benefitting 24 million people, with each of the companies having achieved strong revenue growth over the past year, Leapfrog said. Among them are Redcliffe Labs, which has grown into one of India’s largest and lowest cost diagnostics businesses; and Sun King, the world’s largest off-grid solar financier, which has provided 118 million people with access to solar energy, and saved low-income households over $7.2 billion in energy expenses that would otherwise have paid for biomass, kerosene lamps and diesel generators. Other investments include Insurtech innovator bolttech, Electronica Finance, and Auxilo Finserve. All are involved in innovative technology and services across emerging markets, Leapfrog said.

The latest funding round included $808 million of primary fund commitments by investors, and up to $210 million from pre-allocated co-investments. Cornerstone investors for LeapFrog’s Fund IV include institutional limited partners such as Temasek, AIA, Prudential Financial, and development financial institutions, including the European Investment Bank and the U.S. International Development Finance Corporation. The Fund also drew significant commitments from global asset managers such as Sumitomo Mitsui Trust Bank and Van Lanschot Kempen, healthcare strategic investor Eli Lilly and Company, and foundations and endowments such as the Ford Foundation and the IMAS Foundation. The firm added that Fund IV raised a significant amount of capital from new investors and broadened its investor base into new markets including Singapore, China, Japan, Austria, Norway, Oman and Turkey.

Dominic Barton, Chairman of LeapFrog Investments, said:

“LeapFrog’s mission is underpinned by our committed, commercially astute, and socially responsible limited partners. We want to thank those investors today for putting their faith in the LeapFrog team to deliver strong risk-adjusted returns across exciting, innovative businesses in high-growth markets. Fund IV will be instrumental in scaling the impact champions of the future in financial services and healthcare, as well as building future prosperity and economic resilience for emerging consumers.”