Private equity firm to raise $800m for purchases in African banks and insurances

Dec 14, 2016

OPIC has already approved an investment of $200 million in the fund.

Private equity firm LeapFrog Investments plans to raise $800 million for its latest fund in a bid to acquire stakes in African banks, insurance brokers and payment companies.

Karima Olokun-Ola, a Partner at LeapFrog in London, told the Business Times that the fund will target Africa's emerging consumers because there are more than four times the size of the continent's middle class.

"We are speaking to insurance companies, ones that are looking for capital and those
with sufficient capital but are looking to take advantage of consolidation and grow market share," she said.

"We are looking at payment companies because it's becoming a popular tool that offers cheaper ways of doing business across the continent," she added.

In particular, Mrs. Olokun-Ola explained that new regulations requiring insurance companies in Kenya to hold more cash will create buy-out opportunities, while the continent's largest population in Nigeria and more sophisticated consumers in Ghana make those markets attractive.

Overseas Private Investment Corp (OPIC), the development financing unit of the US government, has already approved an investment of up to $200 million in the fund.ADNFCR-2976-ID-801829898-ADNFCR