Dominic Barton and Henri de Castries join the Global Leadership Council of LeapFrog Investments
Council will provide strategic guidance and network to help reach one billion emerging consumers
London, October 17 2018:
LeapFrog Investments , the leading Profit with Purpose investor, today announced the formation of a Global Leadership Council focused on the firm’s goal of reaching one billion emerging consumers by 2030. Dominic Barton and Henri de Castries are the Council’s inaugural members. “Today we welcome two of the world’s foremost business leaders, whose imagination, strategic clarity and global networks will support LeapFrog to reshape dozens of companies and emerging markets, and impact hundreds of millions of lives,” said Dr Andrew Kuper, founder and CEO.
Mr Barton is a Senior Partner and former Global Managing Partner at McKinsey & Co and co-author of Reimagining Capitalism. Mr de Castries is the former Chairman and CEO of AXA and President of Institut Montaigne, a pioneering thinktank dedicated to public policy in France and Europe. Among diverse leadership roles over three decades, both have overseen landmark panels and studies focused on how finance can drive better growth and outcomes for society.
The announcement comes 10 years since LeapFrog’s launch. In September 2008, President Clinton and Dr Kuper committed LeapFrog to a target of reaching 25 million lower-income people with financial tools within a decade, whilst delivering strong profits to investors. Today, LeapFrog companies reach 140 million people with financial tools or healthcare and they have grown revenues on average at 40 per cent per year. Several of LeapFrog’s companies have been acquired by Allianz, Standard Chartered, Fidelity, Prudential PLC, Swiss Re and other leading global corporations, regularly doubling or tripling investors’ capital.
“It is a decent beginning. In the next decade, we aim to help portfolio companies to reach one billion people with essential services, and in so doing, to provide further reward to our growing community of institutional and high net worth investors,” said Dr Kuper.
“The Global Leadership Council will provide the board and leadership team with invaluable guidance, insight and relationships to ensure we overachieve on those financial and social goals. Each of the Council’s members built, as chief executives and chairmen, industry-leading and high-growth global businesses. Each has driven the use of digital technologies to serve customers. Each has encouraged institutional investors to bring long-term, sustainable and impact investing to the forefront of their portfolios.”
Large demographic shifts over the coming decade will see two-thirds of the nine billion people in the world living in Asia and Africa. The weight of the global economy will move increasingly east and south. Billions of consumers will rise towards the middle class, at an accelerating pace driven by advances in technology and rapid urbanisation. This creates a historic opportunity for investment in the growth markets of Africa and Asia. LeapFrog invests in the companies that provide essential services to those emerging consumers.
In the months ahead, the firm will be announcing several further eminent members of the Council, with complementary regional and industry expertise, all oriented to ensuring Profit with Purpose becomes a new norm for leading businesses and investors.
Dominic Barton said: “Capitalism is at a crossroads. There is an historic opportunity to build purpose-driven businesses and investment groups that generate both outsize growth and impact people’s lives positively; this stands in stark contrast to short-term thinking that amplifies negative outcomes for society. LeapFrog has been a leader in this positive and pioneering thinking in investment and business for a decade. I am very pleased to partner with the group and to participate in its Global Leadership Council, demonstrating a better kind of business, at unprecedented scale.”
Henri de Castries said: “As part of the Global Leadership Council, I look forward to focusing on how to expand Profit with Purpose investing to new markets and innovative companies, helping to transform the way business is done and its impact on diverse societies. I have long found LeapFrog’s approach to delivering profit with purpose very compelling and have been glad to see other major investors and companies following suit, focusing on the opportunity to serve emerging consumers – and serve them well. The scale of this opportunity has only just begun to be realised in our fast-changing world.”
About the Global Leadership Council Members:
Dominic Barton is a Senior Partner and former Global Managing Partner at McKinsey, and leads the firm’s focus on the future of capitalism and the role business leadership can play in creating long-term social and economic value. He serves as Chair of the Canadian Minister of Finance’s Advisory Council on Economic Growth and is Chair of the Seoul International Business Advisory Council. He is Chancellor at the University of Waterloo and also a Trustee of the Brookings Institution, a Rhodes trustee, an adjunct professor at Tsinghua University in Beijing and a board member of FCLT Global (Focusing Capital on the Long Term). Dominic has authored numerous books, including co-authoring with Dezso Horvath and Mathhias Kipping, Re-Imagining Capitalism: Building a Responsible Long-Term Model.
Henri de Castries was CEO and Chairman of the Board of AXA from 2000 to 2016, where he built the company into the leading global insurance brand. He is President of The Institut Montaigne a pioneering thinktank focused on public, social and economic outcomes for France and Europe. Mr de Castries worked at AXA for 27 years and since stepping down as Chairman and Chief Executive has focused on directorships at HSBC, as well as holding the Vice Chairmanship of Nestle. Prior to working at AXA, he worked for the Minister of Finances of France, including as a member of the French Treasury.