Temasek backs future funds of impact investor LeapFrog with $500 mn

Temasek, a global investment company owned by the Singapore government, has committed to investing $500 million in future funds of impact investor LeapFrog Investments. As part of the strategic partnership, Temasek will take a minority stake in LeapFrog and provide growth capital to support its expansion and investment capabilities across Asia and Africa.

“We plan to accelerate our investments in India, investing even more capital over the medium term,” Andrew Kuper, founder and CEO of LeapFrog Investments, told Business Standard. “Our team is actively looking for strong purpose-driven companies to invest in -- be it in insurance, savings, pensions, payments, credit, banking or diverse kinds of health care,” Kuper added.

In India, LeapFrog has so far deployed capital across nine companies, including MedGenome, Ascent Meditech, Northern Arc Capital, Fincare, Dvara, NeoGrowth, and Magma.

The firm said it would continue to make private equity investments in financial services and health care businesses across India. “With over a billion people who can and will rise in India, there is an immense opportunity to drive impact investment in this country, to achieve what we call Profit with Purpose,” said Kuper.

LeapFrog and its investment process will continue to be managed and controlled by its team of partners, with Temasek taking one non-executive seat on LeapFrog’s board.

Andrew Kuper, CEO, LeapFrog Investments, says the company plans to accelerate investments in India

“We believe in the potential of impact investing to unlock the capital to meet these challenges. Our partnership with LeapFrog, with its focus on serving underserved markets, underscores Temasek’s commitment to investing for impact, and the contributions these investments make towards shaping a better world for our communities,” said Benoit Valentin, head of impact investing at Temasek.

Including this partnership, LeapFrog would receive over $2 billion from global institutional investors since inception. At present, LeapFrog is investing from its $750 million fund that it raised in 2018.

The PE player claims that its companies had grown on an average of 30 per cent a year, reached 212 million people with health care or financial services, and directly provided employment to over 130,000 people.

Some of LeapFrog’s India bet

• Mahindra Insurance broker            
• Northern Arc
• Shriram CCL
• MedGenome
• Ascent Meditech
• Fincare