IFC set to re-up as LeapFrog seeks $800m for Fund III

IFC previously invested in LeapFrog’s debut fund, a 2008 vehicle that focused on microinsurance and financial services in developing countries. For the latest fund IFC will join other development finance institutions (DFI) such as the US-based Overseas Private Investment Corporation (OPIC), which committed $200 million to the fund after it launched in 2015.

The fund, LeapFrog Emerging Consumer Fund III, will invest in mid-market companies in Africa, South Asia and Southeast Asia, according to a disclosure. About two thirds of the capital is expected to focus on the financial services segment, with the rest aimed at companies in the healthcare industry. The GP plans to commit $25-30 million per company.

Both OPIC and IFC see the fund as a contributor to their goals of expanding availability of credit and financial services to underbanked populations. IFC also expects LeapFrog’s investments to enhance regional integration by enabling cross-border expansion for its target companies. The DFI will join the fund’s advisory committee, where it plans to provide guidance related to governance and fund supervision.

The $800 million target - cited in an earlier OPIC disclosure - is twice the size of LeapFrog’s previous vehicle, which was itself significantly larger than the GP’s $135 million debut fund. The GP’s Asia investments include Indian non-banking finance companies (NBFC) Magma Fincorp and IFMR Holdings, which the firm partially exited to Eight Roads last year. It has also backed Thailand’s Syn Mun Kong Insurance and Indonesia’s Reliance Capital Management.

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• Topics
• South Asia
• Southeast Asia
• Fundraising
• LPs
• Growth
• GPs
• India
• Southeast Asia
• LeapFrog Investments
• IFC