Philippines-focused private equity fund Navegar is seeking $150 million for a new fund that will invest in middle-market, growth-oriented companies in the country.
Navegar provides growth capital to established businesses with a target investment size of up to $18 million. It largely focuses on investments in healthcare, manufacturing and consumer services.
The International Finance Corporation (IFC), a member of the World Bank Group, has proposed an equity investment of up to $20 million in Navegar’s latest private equity vehicle, Navegar II LP, according to a recent disclosure.
IFC said Navegar II LP is expected to help improve access to long-term risk capital for fund investees in the Philippines that should lead to accelerated investee growth. Additionally, increased PE investment levels are expected to improve market competitiveness by small and mid-cap firms supported by PE investors.
“Through this investment, IFC would support a fund manager in a country where PE capital is still very scarce,” the IFC disclosed.
IFC is also expected to play a significant role in the fund’s structuring and governance, both before the fund’s first closing as well as throughout the fund’s life.
Navegar II LP will be managed by Navegar GP Ltd, a partnership between local partners Honorio Poblador IV, Javier Infante, Rodel Manansala, Swedish national Patrik Brummer, and Norwegian national Anders Stendebakken.
Last year, Navegar exited its investment in the US- and Philippines-based outsourcing startup TaskUs, which was bought by Blackstone for a reported $250 million. The Philippine investor had invested $15 million in the startup in 2015.
Navegar’s current portfolio companies include The Bistro Group, a premium casual dining operator in the Philippines; Bo’s Coffee, a homegrown coffee chain; and Bistronomia, an F&B group that operates premium Spanish restaurants.