In backing Enterprise Group with $180 million, LeapFrog Investments is making its largest deal to date. The investment in the Ghanaian financial services provider is also the first to be made on behalf of LeapFrog Strategic African Investments, the emerging market private equity investor’s $350 million fund which has Prudential Financial as its primary investor. As part of the deal, LeapFrog will have representation on Enterprise’s Board of Directors.
The transaction sees LSAI acquiring Sanlam Emerging Market’s stake in three of Enterprise’s subsidiaries for $130 million, with the balance of $50 million being earmarked to fund the company’s growth plans. The deal is subject to the fulfillment of customary closing conditions, including the receipt of necessary regulatory approvals.
Enterprise offers insurance, life cover and pension products to Ghana’s consumers and achieved rapid growth in premium sales recently, including 26% in compounded annual growth between 2013 and 2015. With Ghana’s economy projected to grow by almost 9% in 2017, it’s expected that the demand for financial services products in the country will continue to expand significantly, an opportunity which Enterprise, which already has a 28% market share, is well-positioned to benefit from.
“We are extremely pleased to enter into this strategic relationship with Enterprise Group,” Said Norm Kelly, who co-lead the transaction for LeapFrog with Doug Lacey. “Enterprise Group’s management team has built a robust platform for growth in West Africa. With the capital and expertise of our team behind the business, we are confident that it will scale to provide millions more people with access to essential financial services.”
Enterprise Group was provided legal advice by Bentsi-Enchill, Letsa & Ankomah for the deal. Omega Advisors provided them with additional advisory services. LeapFrog was advised by law firms Orrick, Herrington & Sutcliffe and m.dowuona & company, PwC for accounting and tax advice and Deloitte for actuarial advice. Nardello, Wiley Rein, EBS Advisory and Broll provided LeapFrog with additional advisory services for the transaction.