LeapFrog Investments, the emerging markets impact investment firm whose tagline is “profit with purpose”, has made its largest investment to date in a Ghanaian insurer.
The $180m cheque was the largest ever written by LeapFrog, and came from the firm’s $350m Strategic African Investments fund in which global insurance firm Prudential is the primary investor.
The investment in Enterprise Group is designed to increase the take-up of insurance in Ghana, where currently only five per cent of adults have any form of coverage.
“Enterprise Group’s management team has built a robust platform for growth in West Africa,” said LeapFrog’s Norm Kelly.
“With the capital and expertise of our team behind the business, we are confident that it will scale to provide millions of more people with access to essential financial services.”
This was the first deal completed from LeapFrog’s Strategic African fund and should help Enterprise Group increase efficiencies, develop products and expand the business into other markets.
The Ghanaian institution currently offers insurance, life cover, and pensions.
Its life insurance arm controls gross premiums of more than $50m and recorded a compound annual growth rate of 26 per cent between 2013 and 2015.
LeapFrog will buy out Sanlam Emerging Markets, which holds stakes in three Enterprise subsidiaries, for $130m. The extra $50m will be used to fund growth.
Private equity firm LeapFrog was founded in 2007 in London by two South Africans, Jim Roth and Andrew Kuper. It invests across Africa and Asia.