LeapFrog Investments, an Australian-South African private equity firm, which invests in businesses in Asia and Africa to enable leaps of growth, profitability and impact, has announced the closing of its fourth fund ( Fund IV ) at US$1.15 billion, making it the largest fundraising effort in the firm’s history.

This includes US$1.02 billion in primary commitments, alongside US$210 million in co-investments. The fund raising also underscored the rising prominence of Asia as a cornerstone of social impact finance, with over 50% of its capital sourced from investors in Japan, Singapore and China.

Key supporters include institutional heavyweights, such as Singapore state investment firm Temasek, AIA and Sumitomo Mitsui Trust Bank. These partnerships not only bolster LeapFrog’s healthcare and financial services initiatives but also underline the growing alignment between profit motives and purposeful investing.

“What LeapFrog’s team has achieved in this fundraising cycle is phenomenal, attracting world-class institutional investors, many from new markets, to our distinctive profit with purpose strategies,” says Andy Kuper, the firm’s founder and CEO.

Dominic Barton, the firm’s chairman, adds: “LeapFrog’s mission is underpinned by our committed, commercially astute, and socially responsible limited partners. Fund IV will be instrumental in scaling the impact champions of the future in financial services and healthcare, as well as building future prosperity and economic resilience for emerging consumers.”

Asia’s central role

This latest funding cycle marks a critical pivot towards Asia, with first-time participation from key regional investors. The momentum reflects the region’s growing commitment in embracing socially responsible investing.

Japan’s Sumitomo Mitsui Trust Bank and China’s inaugural entries signalled a notable shift in capital allocation strategies, aligning with LeapFrog’s mission of transforming emerging markets.

Among Fund IV’s investments, several companies demonstrate the fund’s strategic focus on Asian markets, including Redcliffe Labs ( India ). The diagnostics firm has rapidly grown to serve over 20 million patients via its expansive network of labs and collection centres.

While Bolttech, an insurtech pioneer leverages embedded insurance models across Southeast Asia, including Indonesia, Thailand and Vietnam, enables affordable, customized policies.

Another recent Fund IV investment Electronica Finance, is helping power rapid micro, small and medium-sized enterprise ( MSME ) growth in India with loans for machines, equipment, rooftop solar and other purposes, and has tripled assets under management over the last five years as it supports some of the 40 million Indian MSMEs that collectively deliver 30% of the country’s annual GDP.

Asia’s prominence in LeapFrog’s success, it says, demonstrates its readiness to lead in impact finance, supported by burgeoning markets and favourable demographics. The firm’s US$500 million commitment from Temasek and its climate investment strategy further solidify its role in fostering sustainable development.

“We are in a unique position to pursue strong returns and positively change millions of lives,” Kuper adds. “The fund’s target is to impact 100 million emerging consumers, with 24 million already reached.”