LeapFrog Investments, a leading specialist investor in emerging markets, today announced its acquisition of a Ksh22 billion majority stake in Kenya’s GoodLife Pharmacy, the largest direct investment in the East African retail pharmacy sector to date.
LeapFrog will now build on its financial services specialism by diversifying its private equity investments into a closely linked sector – healthcare. This will develop a platform that combines both payers and providers, thereby bringing consumers greater access to affordable, quality healthcare.
The World Health Organisation (WHO) estimates that over 150m people fall into poverty annually due to catastrophic healthcare events and an inability to pay out-of-pocket for healthcare services. LeapFrog’s approach is aimed at partnering with companies in Asia and Africa that are addressing this challenge. The Goodlife investment follows LeapFrog’s 2014 investment of KSH 18.7 billion in leading Kenyan health insurer Resolution Insurance.
Dr Felix Olale and Michael Fernandes, who are partners, will serve as Global Co-Leads for health investments. They will be supported by a team of eight specialists with deep healthcare investment expertise, and experience of African and Asian markets. Leapfrog’s wider global network will support origination and execution.
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“Low health insurance penetration, coupled with an increase in utilization of services has an enormous impact on the ability of consumers to access and afford quality health care. By moving into health, we are taking a unique approach and addressing the challenge from both sides – investing in both health insurance companies and health service providers,” said Dr Olale.
A leading healthcare expert in emerging markets, Dr. Felix Olale was previously the Chairman of the Excelsior Group, a US-Kenyan based advisor and investor in healthcare, finance and technology companies in Africa. Prior to that he was an Associate Partner with McKinsey & Company in New York.
Mr Michael Fernandes, Global Co-Lead responsible for Asia, has an extensive track record in health investments. He previously served as Country Head for India for Khazanah Nasional Berhad, leading a global healthcare team responsible for over $7bn of investments across the platform. Michael also served on the Boards of the Indian-based Infrastructure Development Finance Company and Apollo Hospitals, the leading healthcare provider in India.
