Filipino private equity firm browse Received a $15 million commitment from Sweden’s development finance institution Swedish fund It is taking another step for its third private equity fund by adding new capital to back mid-market companies as investors continue to see opportunities in one of Southeast Asia’s fastest-growing economies.
The investment will be distributed through Navegar Fund III, which aims to have a final fund size of $250 million. The fund invests in Philippine middle market companies, providing long-term capital and active ownership to help businesses expand operations, strengthen governance and increase productivity.
Swedfund said the investment will support companies operating in consumer and business services, including the healthcare, food distribution and logistics sectors, which play an important role in the country’s domestic economy.
This commitment comes at a time when Filipino midsize businesses face limited access to long-term growth capital despite the country’s resilient economic growth.
While commercial banks remain the primary source of financing, private equity firms are increasingly stepping in to provide patient capital to companies looking to scale without needing to immediately go public.
According to Swedfund, many Filipino small and medium-sized businesses still struggle to obtain the long-term financing needed to expand and formalize their operations.
The development finance institution said nearly 70% of the country’s workforce is employed in the informal sector, where jobs often lack stability, social protection and skills development opportunities.
By supporting businesses that can grow into larger employers, Swedfund said the investment aims to strengthen local value chains, improve access to essential goods and services and contribute to more inclusive economic growth.
“Creating more productive and formal jobs is essential for inclusive economic development,” Swedfund Food Systems and Strategic Investments investment director Helen Hagos said in a statement.
“This investment aims to strengthen the private sector and contribute to sustainable job creation in the Philippines by helping growing businesses access the capital they need to expand,” he added.
The investment also supports the United Nations Sustainable Development Goal on Decent Work and Economic Growth and is aligned with Swedfund’s thematic fund investment strategy targeting emerging markets with strong potential for inclusive growth.
For Navegar, the commitment adds momentum to fundraising for its third flagship fund at a time when private equity managers in Asia-Pacific face a more challenging fundraising environment.
Industry research has shown that capital raising has surpassed exits as the region’s top concern for private equity and venture capital firms, as limited partners become more selective amid high interest rates and geopolitical uncertainty.
Despite the more challenging fundraising environment, investors continue to view the Philippines as an attractive long-term market supported by favorable demographics, rising consumer spending and sustainable economic growth.
Mid-market companies remain an important investment segment because they often have established business models but need institutional capital and operational expertise to reach the next stage of growth.
Navegar Fund III will continue the firm’s strategy of investing in Philippine businesses that serve the local economy, partnering with management teams through active ownership, and helping portfolio companies improve governance, professionalize operations, and pursue long-term expansion.
