Temasek-backed private equity firm LeapFrog Investments, which has backed Indian companies such as Redcliffe, BatterySmart and Healthify, has marked the close of its fourth fund, exceeding the initial target corpus of $1 billion.
The closing was announced months after LeapFrog pushed its deadline to mark the closure due to various legal processes and approvals.
The asset manager which bets on firms in healthcare, financial services and climate solutions, said Tuesday that its Fund IV has received commitments and co-investments amounting to $1.02 billion. Along with Prudential Financial's partnership to invest in an African financial services firm has boosted LeapFrog's healthcare and financial services allocations in the fundraising cycle to over $1.15 billion.
LeapFrog said of the funds raised in the cycle, it received $808 million of primary fund commitments and up to $210 million of pre-allocated co-investment to fund healthcare and financial services companies in global markets.
Some of the existing investors in LeapFrog participated in the round such as Singapore's Temasek, insurers AIA and Prudential Financial and development financial institutions like the European Investment Bank and the U.S. International Development Finance Corporation.
It also received commitments from asset managers such as Sumitomo Mitsui Trust Bank and Van Lanschot Kempen, Eli Lilly and Company, and endowments such as the Ford Foundation.
Long-time backers of the investment firm such as International Finance Corporation and EIB have committed $110 million in total to Fund IV. In 2021, Temasek pledged $500 million to LeapFrog and its growth equity funds, including Fund IV.
Fund IV also drew commitments to raise capital from new investors in countries like Singapore, China, Japan, Austria, Norway, Oman and Turkey, with more than 50% of investments raised from Asia, LeapFrog said in a statement.
In India, through its latest fund, LeapFrog has already invested in startups like Healthify, Auxilo Finserve and Redcliffe Labs. In October, Healthify raised $20 million in fresh funding round led by Khosla Ventures and LeapFrog, and claims to be on track to be EBITDA-positive by the end of the year. Redcliffe Labs recently secured $15 million in contribution from the global investment firm in its Series C round and is looking to improve its cash flows and profitability through acquisitions.
In July, higher-eduction lender Auxilo Finserve raised $33.4 million in an equity funding round led by LeapFrog. The company has seen its loan book rise by 75% compounded annual growth in the last three years, LeapFrog claims.