LeapFrog Financial Inclusion Fund II
Last updated 12 May 2020, by Impactyield.
Emerging countries (256) / Africa (127) / Eastern Africa (50) / Kenya (12)
LeapFrog Financial Inclusion Fund II is a Profit with Purpose fund focused on financial inclusion, investing in companies serving emerging consumers in Asia and Africa with essential financial tools – with a distinctive focus on insurance and adjacent products.
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 essential financial safety nets and springboards to help them escape the cycle of poverty and achieve their full potential.
LeapFrog has attracted many of the world’s leading banks, funds and reinsurers as investors. It is the largest dedicated investor worldwide in insurance and related financial services to emerging consumers. As at December 2014, LeapFrog's partner companies were serving 24.5 million people across 16 countries.
The fund’s priority countries include India, Indonesia, the Philippines, Sri Lanka, Ghana, Kenya, Nigeria and South Africa. LeapFrog is a value-add investor, supporting portfolio companies across the value chain. Drawing on 150+ years of 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 Financial Inclusion Fund II is a $400m investment fund, backed by investors that include Swiss Re, PartnerRe, MetLife, Prudential (USA), XL Group, Achmea, JPMorgan, TIAA-CREF and Christian Super. 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 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.
LeapFrog anticipates that the Fund’s investments will typically be made into three types of businesses:
Distributors for financial products
Enablers of the provision of financial products, such as administrators or technology platforms
of track record
the year funded
Headquarters location: Australia
Other funds managed by this asset manager: LeapFrog Financial Inclusion Fund
Key performance indicators
Asset manager: LeapFrog Investments
Product track record: Fund has 10 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 - still investing
Style/Stage: Growth Stage
Inception year: 2013
Vintage year: n.a.
Target region: Africa, Eastern Africa, Emerging countries, Kenya
Target close date: 01/08/2014
Product term: 10
Assets under management: 400,000,000 USD (US Dollar)
Investment size: Min: 0; Max: 0; Avg: 0
Co-investment policy: LPs do not 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: 2
Fund investments to date exited or repaid: 0
Management fee: n.a.
Carried interest: n.a.
Hurdle rate: n.a.
GIIN Investors' Council Investment: Yes
Limited Partners / Investors: n.a.
Limited Partner / Investor Type: Development Finance Institution (DFI), Family Office, Pension Funds, Other Institutional Investors
E-mail: firstname.lastname@example.org email@example.com firstname.lastname@example.org
Phone number: +61 2 8356 8110
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President and Founder
Director of Investor Relations
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.
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 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.
Roughly 10-14 investments are expected during the life of the Fund, and it is anticipated that approximately (i) 2/3 of the investments consummated by the Fund will typically be in the U.S. $10-$25 million range, and (ii) 1/3 of the investments will typically be in the U.S. $25-50 million range.
The Fund expects to focus its investment activity within emerging market countries in Asia and Africa, and anticipates deploying approximately 40%- 60% of its investment capital in Africa and 40%-60% of its investment capital in Asia).