Leapfrog Investments, an emerging markets-focused private equity firm, has announced the close of its third Impact Fund (Fund III) at USD 700.0 million (70 billion shillings) surpassing its USD 600 million (60 billion shillings) target by 16.7 percent, with the funds being used to invest in healthcare and financial services companies in Asia and Africa.
According to Cytonn Investments, this close brings the total capital raised by the investment firm so far to USD 1.6 billion (160 billion shillings), with its first fund having closed at USD 135 million (13.5 billion shillings) in 2010 and the second fund closing at USD 400 million (40 billion shillings) in 2014.
The firm also manages USD 350 million (35 billion shillings) for Prudential Financial Incorporation, targeting investments in life insurance companies in Ghana, Kenya, and Nigeria.
Fund III was led by US-based Prudential Financial and other institutional investors in participation including, pensions and asset managers, development financiers, foundations and family offices.
Leapfrog invests in healthcare and financial services companies in Asia and Africa that target emerging consumers defined as low income, by World Bank standards, with less than 1,000 shillings per day in the household, with its priority countries being Kenya, Nigeria, Ghana, South Africa, India, Indonesia, Philippines, and Sri Lanka.
In Kenya, Leapfrog has invested in several businesses in the private sector including 2.2 billion shillings injection into Kenya’s Goodlife Pharmacy in 2016, acquiring a majority stake in the pharmacy.
The investments firm also made a 1.6 billion shillings injection in Resolution Insurance in 2014, followed by an additional 1.1 billion shillings investment in 2016 into the same company, making Leapfrog the majority shareholder.
Cytonn Investments maintains a positive outlook on private equity investments in Africa as evidenced by the increasing investor interest, which is attributed to;
Going forward, the increasing investor interest, stable macro-economic and political environment will continue to boost deal flow into African markets.