Temasek Holdings has entered into a US$500 million ($673.6 million) strategic partnership with LeapFrog Investments, which will take the form of a multi-fund investment by Temasek to anchor LeapFrog’s future funds.
Under the partnership, Temasek will also take a minority stake in the global impact investment group.
In addition, Temasek will provide growth capital for the expansion of the LeapFrog team, as well as for investment capabilities across Asia and Africa.
Following the partnership, Temasek will take one non-executive seat on LeapFrog’s management board. LeapFrog and its investment process will continue to be managed and controlled by its team of partners.
The partnership will see LeapFrog receiving over US$2 billion from global institutional partners since its inception.
Companies under LeapFrog’s four private equity funds have grown at an average of 30% per year.
“There is an urgent and pressing need to address the critical social and environmental challenges that the world is facing. We believe in the potential of impact investing to unlock the capital to meet these challenges,” says Benoit Valentin, head of impact investing at Temasek.
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“Our partnership with LeapFrog, with its focus on serving underserved markets, underscores Temasek’s commitment to investing for impact, and the contributions these investments make towards shaping a better world for our communities,” adds Valentin.
“When we launched LeapFrog, the impact industry did not exist, but we believed that Profit with Purpose was the future of business and investment. For almost 15 years, we have worked to build a values-driven firm, co-creating a thriving industry that now stands at $715 billion and is projected to grow to up to $26 trillion,” says Dr Andy Kuper, founder and CEO of LeapFrog.
“Through this landmark commitment, Temasek joins in our vision to build an enduring and exemplary investment institution. We will continue to open the gates of the capital markets to purpose-driven businesses,” he adds.
“This commitment reflects a new level of scale for the global impact investing industry. World-leading investors are prioritising measurable impact alongside financial returns, demonstrating that each can enhance the other. It is imperative that investors step up the scale of capital they are deploying now, to make it possible for billions of people to lead their families, businesses, and communities to brighter futures,” says Amit Bouri, CEO and co-founder of the Global Impact Investing Network.
