LeapFrog Investments

LeapFrog Investments
Private
Industry Microfinance, Private equity
Founded January 2007
Founder
  • Dr. Andrew Kuper (Founder/President)
  • Dr. Jim Roth (Co-Founder/Partner)
Headquarters Port Louis, Mauritius
Products Investments, Technical and Management Support
Website www.leapfroginvest.com

LeapFrog Investments is a specialist investment company in emerging markets financial services, with more than $500m under management.[1] The firm is headquartered in Port Louis, Mauritius.[2] The manager invests in financial services firms that focus primarily on emerging consumers in Africa and Asia.[3] LeapFrog’s portfolio companies currently provide insurance, savings and pensions products to over 44 million people[4] in countries such as India, Indonesia, Sri Lanka, The Philippines, Ghana, Nigeria, Kenya and South Africa.[5]

A "Profit with Purpose" investor, the LeapFrog team partners with companies that pursue social and financial returns.[6] LeapFrog’s investment strategy has attracted many of the world's leading institutional investors: in September 2014, the group announced that it had successfully raised US$400 million for the final close of its most recent private equity fund.[7]

Investment approach

LeapFrog is currently investing its second fund, which invests amounts between $10–$50 million in target companies.[8] The investments have a 4-7 year time horizon.[9] LeapFrog’s team consists of “high level insurance and investment professionals”;[10] they are described by one CEO of a portfolio company as possessing “expertise in providing innovative insurance products to the underserved segments… We, in Shriram, believe that this partnership will redefine financial inclusion in India”.[11]

In 2012 and 2013, the Financial Times and the IFC awarded LeapFrog with a Special Commendation for Sustainable Investor of the Year.[12][13]

Investments


AllLife: The firm invested $12 million in AllLife, the only South African insurer of people living with HIV/AIDS.[14] Prior to AllLife, many HIV patients in South Africa would be told their lives were uninsurable. But by linking insurance cover to regular medical visits, periodic testing and treatment protocols, AllLife helps people manage their health and ensures that each risk is manageable, measurable and insurable.[15]

Apollo: The firm invested $14 million in Apollo, an insurance group operating in Kenya, Tanzania, and Uganda. It offers life and non-life insurance products through APA Insurance and Apollo Life.[16] The firm sold this investment to Swiss Re in a deal announced in October 2014.[17]

Shriram: The firm invested $15 million in Shriram CCL,[18] which distributes low-cost high-quality financial services including insurance, savings, and investment products to low-income Indians.[19]

Express Life: The firm invested $5.5 million in Express Life Insurance Company,[20] a Ghanaian company providing life insurance and savings. The firm sold this investment to Prudential PLC, in March 2014, in a deal announced in December 2013. This transaction marked Prudential's entry into the African insurance market.[21] [22]

Mahindra: The firm invested $15 million in Mahindra Insurance Brokers Ltd., with the aim of developing and expanding the firm’s insurance broking business in rural areas of India.[23]

ARMLife: The firm invested $7.5m in ARMLife (previously CrystaLife), in a strategic partnership with Asset and Resource Management Co., Nigeria’s largest non-bank financial company and ARMLife’s majority stakeholder.[24]

Bima: The firm invested $9.8m in Bima,[25] a insurance distribution company providing low-price cover via mobile networks in Africa and Asia, and adding 400,000 new subscribers a month.[26]

Petra Trust: The firm invested $3m in Petra Trust, a Ghanaian company offering Pension Trustee Services to its employers and individuals under the Pension Act 2008. Petra Trust is one of Ghana's largest pension-trustee companies.[27]

IFMR Capital: The firm invested $29m in IFMR Capital, a non-banking finance company in India, active in over 345 districts in 24 states. The company acts as a wholesale intermediary to financial institutions providing insurance, credit and other products to underserved businesses and households.[28]

Resolution Insurance: The firm invested $18.7m for a majority stake in Resolution Insurance, through its holding company, Resolution Health East Africa Limited. Resolution Health East Africa Limited is the holding company for leading East African general insurer Resolution Insurance with operations in Kenya and Tanzania and in partnership with IAA-Resolution in Uganda.[29]

SMK: The firm invested in Syn Mun Kong Insurance Public Company Limited (SMK) in Thailand. SMK is Thailand’s second largest automobile insurer and fifth largest general insurer.[30]

afb: The firm invested $25m in AFB Mauritius Limited (afb), a financial services platform offering financial tools to financially excluded customers and small businesses across Sub-Saharan Africa, partnering with mobile operators and retail networks to do so. [31]

Reliance: The firm invested $45m in Reliance Capital Management, a diversified financial services company in Indonesia offering financial tools to low-income consumers across the country. LeapFrog led the investment, investing alongside FMO and PartnerRe. [32]

References

  1. ↑ http://www.reuters.com/article/2014/09/09/funds-leapfrog-idUSL3N0RA11U20140909
  2. ↑ "ACCION Invests $4.2m in Two Microfinance Companies: Mauritius Based Leapfrog Investments Ltd and Swiss Based Paralife, Invests in Initiatives Aimed at Moving Microfinance ‘Beyond Credit’". MicroCapital Affairs. 5 January 2009. Retrieved 19 December 2014.
  3. ↑ http://www.empea.org/newsroom/industry-news/leapfrog-investments-raises-over-us200-million-for-emerging-consumer-fund-g/
  4. ↑ http://www.leapfroginvest.com/lf/about/what-we-do
  5. ↑ http://leapfroginvest.com/pdf/Buyouts.pdf
  6. ↑ http://www.privcap.com/profit-with-purpose/
  7. ↑ http://www.ft.com/intl/cms/s/0/1f5c50d4-3760-11e4-8472-00144feabdc0.html#axzz3CsI3J0tE
  8. ↑ http://www.leapfroginvest.com/lf/wp-content/uploads/2013/06/private_equity_061213.pdf
  9. ↑ http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=60499309
  10. ↑ http://www.ft.com/intl/cms/s/0/e3714822-c10f-11e1-8179-00144feabdc0.html?siteedition=intl#axzz20URv0THi
  11. ↑ http://www.prnewswire.com/news-releases/leapfrog-invests-usd-15m-in-shriram-in-a-strategic-partnership-to-serve-10-million-people-in-india-129400918.html
  12. ↑ http://event.ft-live.com/ehome/index.php?eventid=51443&
  13. ↑ http://aboutus.ft.com/2012/06/14/bridges-ventures-standard-chartered-and-kilimo-salama-among-those-honoured-at-the-2012-ftifc-sustainable-finance-awards/#axzz2k1Gh8A00
  14. ↑ http://www.thegiin.org/cgi-bin/iowa/print/6.html
  15. ↑ http://www.The firminvest.com/pdf/FINalternatives-article.pdf
  16. ↑ http://www.nation.co.ke/business/Apollo-Investments-sells-off-stake-to-The firm-for-Sh1bn/-/996/1144714/-/3ggurhz/-/index.html
  17. ↑ http://www.reuters.com/article/2014/10/08/banking-swiss-re-africa-idUSL6N0S31G420141008
  18. ↑ http://articles.timesofindia.indiatimes.com/2011-09-08/india-business/30130120_1_insurance-group-south-african-insurer-investment
  19. ↑ http://online.wsj.com/news/articles/SB10001424053111903285704576557601686388640
  20. ↑ http://www.ghanabusinessnews.com/2012/04/24/The firm-to-acquire-stake-in-ghanaian-insurance-firm-express-life-with-5-5m-investment/
  21. ↑ http://www.ft.com/intl/cms/s/0/4b1536b8-5daa-11e3-b3e8-00144feabdc0.html#axzz37EwkKY8r
  22. ↑ http://www.empea.org/_files/listing_pages/express_life_web.pdf
  23. ↑ http://origin-www.livemint.com/Money/5prkcR7KofXDEgyiBRTTQI/The firm-buys-15-stake-in-Mahindras-insurance-broking-arm.html
  24. ↑ http://www.The firminvest.com/lf/wp-content/uploads/2013/02/MarketWatch-Announcement-CrystaLife-Investment.pdf
  25. ↑ http://www.impactassets.org/ia50/fund.php?id=a01E000000LMNDYIA5
  26. ↑ http://www.The firminvest.com/lf/wp-content/uploads/2013/02/FT-BeyondBrics-The firm-article.pdf
  27. ↑ http://www.The firminvest.com/pdf/International_Medi_-_The firm_invests_in_Ghanas_Petra_Trust.pdf
  28. ↑ http://The firminvest.com/pdf/IFMRC-press-release-for-website.pdf
  29. ↑ http://The firminvest.com/pdf/Media_Release_website_final.pdf
  30. ↑ http://The firminvest.com/pdf/The firm-and-Lombard-to-invest-in-Thailands-SMK-Insurance.pdf
  31. ↑ http://www.The firminvest.com/pdf/The firm-invests-US25m-in-afb.pdf
  32. ↑ http://leapfroginvest.com/pdf/Global-investors-back-Indonesias-Reliance-Capital-Management_Press-Release_Final.pdf

External links