MICROCAPITAL BRIEF: LeapFrog Invests $29m in Equity in Institute for Financial Management and Research (IFMR) Capital of India

LeapFrog Investments, a for-profit private equity fund based in Mauritius that invests in microfinance, reportedly has invested USD 29 million in return for a minority stake of undisclosed size in the Institute for Financial Management and Research (IFMR) Capital, an Indian non-banking financial company that facilitates funding for organizations that serve low-income people. IFMR Capital, an affiliate of Indian nonprofit IFMR, plans to use the funds to invest in the agricultural sector, increase access to capital markets for small and medium-sized enterprises (SMEs) and expand its existing investments.

As of 2013, IFMR Capital reported assets of INR 1.8 billion (USD 34 million). LeapFrog, which focuses on ventures in Africa and Asia, announced that it closed its most recent private equity fund in 2013 after raising USD 200 million.

By Meraj Husain, Research Associate

About Institute for Financial Management and Research (IMFR) Capital

IFMR Capital, a subsidiary of IFMR Trust, is an Indian non-banking financial company that aims to provide businesses with access to financial services. IFMR Capital’s goal is to provide liquidity and debt capital to the microfinance industry and other sectors that offer products and services for low-income households. IFMR Trust is an affiliate of the Indian nonprofit Institute for Financial Management and Research (IFMR), a research and educational institution. As of 2013, IFMR reported assets of INR 1.8 billion (USD 34 million).

About Institute for Financial Management and Research (IFMR)

Institute for Financial Management and Research (IFMR) is an Indian nonprofit organization with the mission to facilitate universal access to financial services in rural India. Established in 1970, IFMR focuses on the following areas: academic programs, research, executive training and consulting. Its affiliated research centers include: Centre for Micro Finance (CMF), Centre for Development Finance (CDF), Small Enterprise Finance Centre (SEFC), Centre for Insurance & Risk Management (CIRM), Center for Advanced Financial Studies (CAFS), Centre for Innovative Financial Design (CIFD) and Jameel Poverty Action Lab (J-PAL). IFMR is also associated with IFMR Trust, the parent organization of the non-banking financial company IFMR Capital.

About LeapFrog Investments

LeapFrog Investments, which was founded in 2007 by Dr Andrew Kuper and Dr Jim Roth, is a Mauritius-based for-profit private equity fund that invests in emerging markets. LeapFrog’s investors include the Luxembourg-based European Investment Bank, the US-based social investment firm Omidyar Network, the Dutch development bank Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden (FMO), US-based nonprofit microfinance network Accion, US-based nonprofit Calvert Foundation, the World Bank Group’s private investment arm the International Finance Corporation (IFC), German development bank Kreditanstalt fur WiederaufbauV (KfW) Bankengruppe, Bermuda-based global reinsurer Flagstone Reinsurance and the US-based nonprofit Soros Economic Development Fund. LeapFrog team members have also committed USD 1 million of their personal money to the fund. The fund focuses on ventures in Africa and Asia, with initial target countries including Ghana, India, Indonesia, Kenya, Pakistan, the Philippines and South Africa. In 2013, LeapFrog announced that it closed its most recent private equity fund after raising USD 200 million.

Sources and Additional Resources

[1] The Economic Times: “Leapfrog invests $29 million in IFMR Capital Finance,” http://articles.economictimes.indiatimes.com/2014-03-31/news/48735641_1_ifmr-trust-microfinance-debt-capital-markets

MicroCapital, January 31, 2014, “LeapFrog Investments Purchases 25% Stake in Ghana-based Pension Firm Petra Trust,” https://www.microcapital.org/microcapital-brief-leapfrog-investments-purchases-25-stake-in-ghana-based-pension-firm-petra-trust/

MicroCapital, January 6, 2014, “Prudential Purchases Controlling Stake in Ghana’s Express Life Insurance from LeapFrog Investments,” https://www.microcapital.org/microcapital-brief-prudential-purchases-controlling-stake-in-ghanas-express-life-insurance-from-leapfrog-investments/

MicroCapital, January 22, 2013, “India’s IFMR Capital Pools Loan Assets from 8 Microfinance Institutions, For Trading on Bombay Stock Exchange,” https://www.microcapital.org/microcapital-brief-indias-ifmr-capital-pools-loan-assets-from-8-microfinance-institutions-for-trading-on-bombay-stock-exchange/

MicroCapital, September 17, 2013, “LeapFrog Raises $204m for Second Fund; to Invest in Microinsurance, Other Financial Services for Poor People in Africa, Asia,”https://www.microcapital.org/microcapital-brief-leapfrog-raises-204m-for-second-fund-to-invest-in-microinsurance-other-financial-services-for-poor-people-in-africa-asia/

MicroCapital, August 29, 2012, “Asian Development Bank, IFMR Capital to Guarantee $27m in Loans from Ratnakar Bank to Microfinance Institutions in India,” https://www.microcapital.org/microcapital-brief-asian-development-bank-ifmr-capital-ratnakar-bank-provide-partial-credit-guarantee-for-loans-to-microfinance-institutions-in-india/

MicroCapital, May 30, 2012, “LeapFrog Acquires Majority Stake in Ghana’s Express Life Insurance for $5.5m,” https://www.microcapital.org/microcapital-brief-leapfrog-acquires-majority-stake-in-ghanas-express-life-insurance-for-5-5m/

MicroCapital Universe Profile: Institute for Financial Management and Research (IMFR) Capital https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=IFMR+Capital

MicroCapital Universe Profile: Institute for Financial Management and Research (IMFR) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Institute+for+Financial+Management+and+Research+%28IFMR%29

MicroCapital Universe Profile: LeapFrog Investments https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=LeapFrog+Investments

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