Global private equity investor LeapFrog Investments, which has backed InsuranceDekho and Healthify, has shelved plans to explore continuation vehicles as an exit option and will instead focus on traditional routes such as block deals, mergers and acquisitions, and public listings, the firm’s top executive told Mint.
The firm is pursuing exits from its second and third funds as it deploys capital from its fourth fund and a climate-focused investment vehicle. Last week, LeapFrog led investment rounds in Shubham Housing Finance and clean energy company ReNew Energy Global Plc.
“It (continuation vehicle) is not a focus area as of now for us. It is still early days and a nascent industry as far as secondaries are concerned,” said Pranav Kumar, a partner at LeapFrog who leads new investments, portfolio management and exits across South and Southeast Asia.
Continuation vehicles are private equity funds that purchase assets from an existing fund that is close to the end of its lifecycle. They give fund managers an option to maintain control over assets with potential while providing an exit path to existing investors.
In June 2025, Kumar told the media that LeapFrog was exploring continuation vehicles for liquidity but noted challenges around pricing and investor appetite in emerging markets.
LeapFrog’s move comes as firms in India begin to explore secondary funds and continuation vehicles as a means to return capital to investors for some of their portfolio assets. Kumar said that despite inbound interest for some of LeapFrog’s assets, the firm is prioritising more “organic” exit routes across its portfolio.
“We have a few companies that are already listed, so they are at the front of the pipe, and through block deals at the right time we will look to exit those. Scaled, profitable businesses with strong listed peers have a high probability of IPO, and for some, the best outcome would be through M&A, where we will run processes accordingly,” he added.
Preferred option
Kumar said that while there is a temporary slowdown in the public markets, listings continue to remain a key exit route for several of its portfolio companies.
“I am not putting a huge emphasis on it. If it is prolonged, we will have to re-evaluate, but exit processes take several months. Six months later, there is no good reason why the market should not be active again, especially in India,” he said.
Founded in 2007, LeapFrog is an impact-focused private equity investor that backs companies in financial services, healthcare and climate sectors across emerging markets. The firm counts institutional investors such as Temasek, the World Bank’s International Finance Corporation and global insurers American International Group, AXA and Zurich Insurance among its backers.
LeapFrog’s second fund, launched in 2014, raised about $400 million and was focused on financial inclusion investments across emerging markets. Its third fund, launched in 2019, exceeded its initial target, closing at about $700 million.
LeapFrog has executed exits across markets through strategic sales and public market transactions. In India, it exited Fincare Small Finance Bank through its merger with AU Small Finance Bank, while globally, it exited companies including insurance platform BIMA and Allianz.
“India is our largest market, with a third of our global allocation. Our conviction in India as a core market has only grown over time,” Kumar said, adding that the firm plans to raise its next fund after further deploying capital from its current vehicle.
The firm’s India portfolio includes Shubham Housing Finance, NeoGrowth, MedGenome, Shriram Capital and Dvara KGFS.
LeapFrog continues to focus on financial services and healthcare, with climate emerging as a growing area of investment in India. The firm has invested in ReNew and Battery Smart and expects its climate-focused activity to increase.
“With the current geopolitical volatility, the emphasis on climate for strategic reasons is probably going to increase. The whole system is going to decrease dependence on fossil fuels,” Kumar said. “We are actively deploying our climate strategy and will deploy more in India.”