Singapore's Temasek formed a $500 million strategic partnership and took a minority stake in impact investment firm LeapFrog Investments.
The partnership takes the form of a multifund investment by Temasek to anchor future funds launched by LeapFrog, said in a news release from Temasek, a government-owned investment company that had S$306 billion ($214.6 billion) in assets as of March 31, 2020, the most recent data available.
Details of the minority stake were not disclosed, but Temasek will also provide growth capital to support the expansion of LeapFrog's team and investment capabilities across Asia and Africa. 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 partners, a LeapFrog spokesman said.
"There is an urgent and pressing need to address the critical social and environmental challenges that the world is facing," said Benoit Valentin, head of impact investing at Temasek, in the news release. "We believe in the potential of impact investing to unlock the capital to meet these challenges. 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."
LeapFrog invests in businesses in Africa and Asia and was founded in 2007. It has raised more than $2 billion from institutional investors around the world.
A Temasek spokeswoman confirmed that the strategic partnership will take the form of a multifund investment by Temasek to anchor LeapFrog’s future funds for the next few years.