LeapFrog Investments’ historic results reveal the new scale and importance of the impact investing industry

• Milestone achievement comes 17 years since founding of the pioneering impact firm
• Includes 359 million low-income emerging consumers, earning less than $11.20 a day
• Portfolio company revenue has grown by 23% annually on average over the life of LeapFrog
• Flagship Fund IV and new climate investing strategy will further expand impact in 2024

London, UK: LeapFrog Investments, the pioneering profit with purpose firm, announced that its companies have reached 537 million people with essential services, as part of the release of its annual Impact and Investment Results.

LeapFrog’s original targets were to reach 25 million low-income people with essential services and to generate strong risk-adjusted returns for investors. Today, 359 million of the half-billion total people reached are low-income emerging consumers, over 14x the original target. Meanwhile, LeapFrog has raised nearly $3 billion in commitments from over 100 institutional investors, across six funds and separate accounts.

Across its life, LeapFrog has backed and grown nearly 40 healthcare, financial services and climate solutions businesses across 37 countries. These portfolio companies have grown on average at 23% a year. Together they reach and empower the equivalent of over 10% of the population of South Asia, Southeast Asia and Africa – the high-growth regions in which the firm invests.

Dr Andy Kuper, LeapFrog CEO and Founder, said: “This shared dream has become a reality, faster and more broadly than any of us dared to hope. Congratulations to our many investors, stakeholders and supporters. You have backed new technologies and methodologies for delivering insurance, pensions, credit, banking, remittances, diagnostics, pharmaceuticals, medical devices and services as well as green energy. In the face of a pandemic, inflation and multiple conflicts, our world needs such scalable solutions more than ever. Over time, inspiring entrepreneurs and imaginative investors are reshaping developing countries, changing hundreds of millions of lives for the better.”

Impact investing’s success is driving significant capital commitments, with the Global Impact Investing Network reporting the industry surpassed $1.16 trillion in AUM in 2021. Meanwhile, the proportion of total impact AUM coming from pension funds grew from 14% to 33% between 2017 and 2022 according to the GIIN, indicating the appeal to long-term allocators of capital.

Amit Bouri, Global Impact Investing Network CEO and co-founder said: “As our research indicates, investors plan to allocate more capital toward emerging markets over the next five years – something LeapFrog Investments, a long-time GIIN Investors’ Council member, has always done. It’s exciting and encouraging to see that their companies have positively impacted 500 million people, improving their quality of life through access to healthcare, financial support and climate solutions. This is a significant milestone for the impact investing market, and I look forward to seeing what LeapFrog accomplishes in the years to come.”

Sophie Sirtaine, CGAP CEO said: “Impact-driven firms can be pivotal in enhancing global development outcomes, such as health, prosperity, and climate resilience, particularly for low-income people. We hope the success of LeapFrog Investments inspires a wave of innovation and action, as the world urgently requires more trailblazers to help achieve key development goals by 2030.”

Cate Ambrose, Global Private Capital Association CEO said: “GPCA board member [and LeapFrog CEO] Andy Kuper is one of the genuine pioneers of impact investing – especially in the markets closest to GPCA’s mission – and the reach of LeapFrog companies stands as a testament to the scale of opportunity for the future.”

Christina Leijonhufvud, BlueMark CEO said: “Leading impact investors like LeapFrog Investments recognise the importance of not only adopting and aligning to market standards for impact management, but going beyond a ‘check-the-box’ exercise. As investors on the BlueMark Practice Leaderboard, we commend LeapFrog for setting an example for what it means to ensure accountability and transparency in pursuit of meaningful change.”

The annual Impact and Investment Results reflect progress on a number of other core goals for LeapFrog, including creating employment, supporting the growth of small businesses, as well as empowering women and girls. LeapFrog companies directly provided jobs and livelihoods for over 241,000 people in 2023. They supported 20 million micro, small and medium enterprises (MSMEs), fuelling wider job and economic growth. Finally, portfolio companies empowered 268 million women and girls by providing them with essential products and services – including providing tens of millions of diagnostic tests and medications.

In a challenging year for many private capital investors, LeapFrog highlighted its team’s work to build resilience in portfolios even where inflation, supply shocks or currency volatility place stress on multiple markets. Notably, 91% of LeapFrog companies by value in its flagship Fund III are EBITDA positive, up from 66% a year ago.

LeapFrog has released a campaign “Reaching half a billion” showcasing transformative technologies that have enabled so many consumers to access essential services for the first time – from digitally embedded insurance to agent networks to omni-channel healthcare.

Dominic Barton, LeapFrog Board Chairman, concluded: “LeapFrog sets the example for measuring, managing and delivering impact with commercial scale and success. We intend to stay at the forefront of this trend of profit with purpose investing, which will only accelerate in the decade ahead. Half a billion people positively impacted is just the start.”

LeapFrog invests in healthcare, financial services and climate solutions businesses in high-growth global markets. Its companies deliver distinctive impact and robust returns, growing revenues on average 23% a year. LeapFrog companies now reach 537 million people in 37 countries. The firm has raised billions of dollars from global institutional investors, including a recent $500m commitment by Temasek to LeapFrog and its growth equity funds. LeapFrog has twice been ranked by Fortune as one of the top Companies to Change the World and was named inaugural Pioneer in Impact by the FT and IFC at the Transformational Business Awards.

For more information, go to: www.leapfroginvest.com.

Montfort Communications
Joe Wallen: +919820309729

Jack Roddan: +447825670695

LeapFrog@Montfort.London