Philippine private equity firm Navegar has secured a $15 million commitment from Sweden’s development finance institution Swedfund for its third private equity fund, adding fresh capital to back mid-sized companies as investors continue to see opportunities in one of Southeast Asia’s fastest-growing economies.
The investment will be deployed through Navegar Fund III, which is targeting 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 improve productivity.
Swedfund said the investment will support companies operating in consumer and business services, including healthcare, food distribution and logistics—sectors that play an important role in the country’s domestic economy.
The commitment comes as Philippine mid-sized businesses continue to face limited access to long-term growth capital despite the country’s resilient economic expansion.
While commercial banks remain the primary source of financing, private equity firms have increasingly stepped in to provide patient capital to companies seeking to scale without immediately pursuing public listings.
According to Swedfund, many Philippine small and medium-sized businesses still struggle to obtain long-term financing needed to expand and formalize their operations.
The development finance institution noted that about 70% of the country’s workforce remains employed in the informal sector, where jobs often lack stability, social protection and opportunities for skills development.
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,” Helen Hagos, investment director for Food Systems & Strategic Investments at Swedfund, said in a statement.
“By helping growing businesses access the capital they need to expand, this investment aims to strengthen the private sector and contribute to sustainable job creation in the Philippines,” she 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, which targets 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 across Asia-Pacific face a more challenging fundraising environment.
Industry surveys have shown capital raising has overtaken exits as the region’s biggest concern for private equity and venture capital firms, as limited partners become more selective amid higher interest rates and geopolitical uncertainty.
Despite the tougher fundraising backdrop, investors continue to view the Philippines as an attractive long-term market, supported by favorable demographics, rising consumer spending and sustained economic growth.
Mid-market companies remain a key investment segment because they often have established business models but require 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 domestic economy, partnering with management teams through active ownership while helping portfolio companies improve governance, professionalize operations and pursue long-term expansion.