Constant dollars

Investor LeapFrog secures $ 500 million pledge from Temasek to anchor a number of influence funds

Rising up in South Africa’s solely non-segregated faculty underneath apartheid rule, Andy Kuper was uncovered to inequality at a younger age. Nelson Mandela’s inauguration because the nation’s president in 1994 cemented the need to make as huge a distinction as attainable in his profession.

In 2007, Kuper launched LeapFrog Investments, an influence funding fund that was one of many first to undertake the time period “revenue with aim”. Kuper’s concept: to make use of capital and entrepreneurship to help initiatives that associations and philanthropy couldn’t, no less than not so shortly. “My fixed frustration was that the dimensions of exclusion and poverty didn’t match the options,” says Kuper, CEO of LeapFrog. “If you happen to’re making an attempt to serve billions of individuals, you are going to want billions of {dollars}. Charity is extraordinarily necessary and growth help is extraordinarily necessary, however it’s removed from adequate. “

Over the subsequent 14 years, Kuper raised three funds centered on progress stage investments in monetary providers and healthcare corporations combating poverty in Asia and Africa. Throughout that point, LeapFrog’s property underneath administration reached $ 1.8 billion.

Now, LeapFrog is dedicated to elevating one of many largest sums of cash ever for influence investing from a single sponsor. Singapore state-owned funding agency Temasek has dedicated $ 500 million to LeapFrog, the businesses stated, to anchor a number of future funds. Temasek may even take a minority stake in LeapFrog itself to assist the corporate develop its funding workforce, in addition to a non-executive director seat on its board.

In keeping with Kuper, Temasek’s promise is the most important ever made by an LP to an influence investing firm. It additionally serves as a cement of Temasek’s curiosity within the class, which has to this point been casual on the $ 306 billion asset fund supervisor. “I believe that with the richness of the community and the intention, and the expertise of Temasek and LeapFrog, there’s a lot that we are able to actually be taught from one another and obtain collectively,” says Benoit Valentin, head of personal fairness fund investments at Temasek, influence investing and deputy director of its Europe, Center East and Africa areas.

Since its inception, LeapFrog claims to have helped create greater than 130,000 jobs for individuals residing in poverty thus far. And because the class of influence investing has widened lately, with no less than 800 corporations now seizing a possibility that some say will attain $ 1 trillion, the pandemic has seen many such efforts. decelerate and even take a step again. At LeapFrog, Kuper estimates that 150 million individuals all over the world have fallen into poverty because of the unfold of Covid-19. “The necessity for these extremely scalable options that empower individuals is bigger than it was some time in the past,” he says. “A part of the explanation we’re taking Temasek’s funding is to develop and meet extra individuals, as a result of we do not have time to waste.”

Comment here

placeholder="Your Comment">