Hong Kong's AIA commits $200m to LeapFrog

The investment was first reported by The Financial Times and subsequently confirmed to AVCJ by a source close to the situation. LeapFrog, which maintains bases in the region in Singapore and Australia, is currently raising its fourth flagship fund with a target of USD 1bn. Fund III closed on USD 743m in 2019.

The deal is being held up as a signal of growing interest in impact among Asian institutions as the strategy falls out of favour in the US.

Last year, Singapore’s Temasek Holdings invested USD 500m for a minority stake in LeapFrog and unspecified future fund commitments. The government-controlled institution is not involved in operations or investment decisions, although it has a seat on the board and is counted as an essentially indefinite partner.

“I sat down with [Temasek CEO] Dilhan Pillay [Sandrasegara], and he said, ‘Are you looking for a 10-year relationship or a 100-year partnership?’” LeapFrog CEO Andy Kuper told AVCJ in January. “The long-term thinking, depth of relationship, clarity upfront, and commitment to these markets over time is just incredible.”

As recently as four years ago, Asia represented only 4% of LeapFrog’s LPs; it is currently 30%, with sovereign funds, family offices, and high net worth individuals the fastest-growing investor segments. “Asia is now almost as important a funding source as Europe or the US,” Kuper told The Financial Times.

Kuper, a serial entrepreneur based in Australia, is regarded as an early-mover in impact investment globally, having launched LeapFrog in 2008 with support from Bill Clinton. The idea was sparked by the advent of the first commercial smart phone, which Kuper recognised as a new tool for bringing services to developing countries.

Financial services was the initial focus, while healthcare has become core in recent years. LeapFrog claims to have reached some 250m low-income people to date. Standout investees include auto marketplace CarDekho and genetic testing business MedGenome, both India-based. Recent initiatives include a plan to support 25m micro and small businesses by 2030.

The GP has raised more than USD 2bn since its inception. LPs have historically included J.P. Morgan, Accion, Omidyar Network, Soros Economic Development Fund, and Calvert, as well as reinsurance companies Flagstone Re and SCOR, and various development finance institutions, including the International Finance Corporation (IFC).

The AIA commitment is LeapFrog’s third largest behind Temasek and a USD 350m allocation from US insurer Prudential Financial in 2016. It is described as a first-of-its-kind investment for the Hong Kong insurer, which has recently ramped up impact-related activities with programmes in areas such as community outreach and environmental protection.

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• Topics
• South Asia
• Southeast Asia
• Greater China
• GPs
• LPs
• Fundraising
• Venture
• Financials
• Healthcare
• Hong Kong (China)
• LeapFrog Investments
• Impact investment