LeapFrog Financial Inclusion Fund
Last updated 12 May 2020, by Impactyield.
Emerging countries (256) / Africa (127) / Eastern Africa (50) / Kenya (12)
LeapFrog is a $135 million profit-with-purpose fund focused on financial inclusion. The fund invests in companies serving the ‘next billion’ consumers in Asia and Africa with essential financial tools – with a distinctive focus on insurance.
LeapFrog targets both attractive financial returns and large-scale social impact from reaching this vast untapped market, the 85% of low-income people who are willing to pay for affordable services yet are offered none. Through its portfolio companies, the fund aims to reach 25m vulnerable people, 15m of them women and children, providing protection against life’s tragedies and ending cycles of poverty.
Launched with President Bill Clinton in 2008, LeapFrog has attracted several of the world’s leading banks, funds and reinsurers as investors. It is now the largest investor globally in microinsurance and related essential financial services, and its companies reach over 8m people in emerging markets.
The fund’s priority countries include India, Indonesia, Philippines, Sri Lanka, Kenya, Ghana, South Africa and Nigeria. LeapFrog is a value-add investor, supporting portfolio companies across the value chain. Drawing on over 150+ years of combined experience as CEOs and financial services experts, LeapFrog’s team provides not only strategic support to CEOs and boards, but also deep operational knowledge to management teams in growth businesses.
LeapFrog is a $135M investment fund, backed by investors that include Accion, Calvert, EIB, Flagstone Re, FMO, IFC, J.P. Morgan, KfW, Omidyar, Proparco, SCOR, Soros, TIAA-CREF, and Triodos. The fund invests in companies that tap an underserved market: the 2 billion people not reached by formal insurance and related financial services.
The fund invests in companies with strong management teams, poised to scale their company or ready to move down-market into the low-income space. LeapFrog's investments have included a US $15m investment into Shriram CCL, a massive distributor of insurance, savings, and investment products across India; a $14m investment, the largest in the history of microinsurance in Africa, into Kenyan insurer Apollo, an industry leader in the 120 million person East African community; and a nearly $7m investment in AllLife, the first insurer of people living with HIV, which links clients to a health management program, rendering them insurable.
LeapFrog’s investment team consists of leaders in emerging market insurance and investment, with experience in life, health, property, and other forms of insurance. LeapFrog is thus able to support strong, local management teams, and provide its partner companies with assistance in business planning, product design, distribution, and regulatory/risk management.
of track record
the year funded
Headquarters location: Australia
Other funds managed by this asset manager: LeapFrog Financial Inclusion Fund II
Key performance indicators
Asset manager: LeapFrog Investments
Product track record: Fund has 15 years of track record
Target IRR: n.a.
Committed Capital: n.a.
Target return category: Risk-adjusted market-rate of return
Fund domicile: Mauritius
Product status: Closed - no longer investing
Style/Stage: Growth Stage
Inception year: 2008
Vintage year: 2009
Target region: Africa, Eastern Africa, Emerging countries, Kenya
Target close date: n.a.
Product term: 7-10 years
Assets under management: 135,000,000 USD (US Dollar)
Investment size: Min: 0; Max: 0; Avg: 0
Co-investment policy: LPs have priority, With LPs and non-LPs
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 8
Fund investments to date exited or repaid: 2
Management fee: n.a.
Carried interest: n.a.
Hurdle rate: n.a.
GIIN Investors' Council Investment: Yes
Limited Partners / Investors: Accion International, Calvert Investments, DEG, European Investment Bank, Flagstone Re, FMO, Haverford Re, International Finance Corporation, Felipe Medina, J.P. Morgan, KfW Bank, Omidyar Network, Proparco, SCOR, Soros EDF, TIAA-CREF, Triodos, and the Waterloo Foundation.
Limited Partner / Investor Type: Development Finance Institution (DFI), Family Office, Pension Funds, Other Institutional Investors
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Phone number: +612 8305 4320
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LeapFrog’s business philosophy and social commitment is to invest only in companies that can provide high quality, relevant and affordable insurance and related financial services to people who are low-income or underserved. Insurance is often the first or second most desired financial service by low-income people, is rarely accessed by this vast group, and is a major focus of the fund. In helping provide safety nets where there were none, LeapFrog both protects people at the worst life moments and enables different daily life and work choices - ending cycles of poverty. Importantly, LeapFrog’s commercial investment approach affords the scale and orientation required to sustainably combat global poverty – hence the fund has been able to reach over 8m people in less than 3 years.
LeapFrog only invests in companies committed to delivering products that are of real value to clients and their families. To advance this fundamental principle, LeapFrog applies the most sophisticated social impact metrics in its field (the PSI or Positive Social Impact metrics system), builds tracking mechanisms into its relationships with portfolio companies, and ensures governance rights.
Due to its success in driving the insuring of millions of people, LeapFrog has been hailed by former President Bill Clinton as ‘the Insurer to the Poor’.