Dealflow | March 10, 2021

Temasek commits $500 million for a stake in LeapFrog Investments

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, March 10 – Singapore’s state-backed investment arm Temasek will become part-owner in LeapFrog Investments and anchor its future funds. The commitment pushes the pioneering emerging markets impact investing firm’s capital raised past $2 billion.

The investment is a “a trajectory-changing moment” for impact investing, LeapFrog’s Andy Kuper told ImpactAlpha. “We have confirmed that this is the largest ever single commitment to an impact investor. I am hopeful it marks a new era of scale and success for the global impact investment industry.”

The Global Impact Investing Network’s Amit Bouri said the Temasek deal signals that “investors are prioritizing measurable impact alongside financial returns, demonstrating that each can enhance the other.” He called on investors to “step up the scale.”

Impact pioneer

LeapFrog launched in 2007 with a then-unique mission to invest in companies delivering financial services (and later healthcare), to the rising global consumer class. Investments in companies like remittance services provider WorldRemit, pension manager ARM Pension, pharmacy chain Goodlife, and insurance provider BIMA have provided services to more than 212 million, mostly low-income people worldwide.

“The rise of these individuals, and their increased ability to access essential services, via technology-enabled solutions, are secular trends that will not go away,” Kuper said.

Last year, LeapFrog expanded its health focus, backing genetic testing company MedGenome.

LeapFrog is one of a few impact investors with a sizable roster of exits and partial exits—more than 10

“Impact investing has to be the lever that’s long enough to move to this world,” Kuper said last year on ImpactAlpha’s Agents of Impact podcast. This world has 4 billion low-income people in it. So we really need to focus on those companies that are going to serve tens of millions of people with quality, affordable products and make sure they get the support they need.”