Swedfund invests $15 M in Navegar Fund III to provide funding for Philippine businesses

Navegar firm III, a private equity firm that focuses on mid-sized businesses in the Philippines, received a $15 million commitment from Swedfund on Thursday.

According to a statement from Swedfund, the investment is intended to support local companies in expanding, strengthening their operations, and generating more productive and high-quality jobs.

The investment gives mid-sized businesses in consumer and commercial services—including those in industries like healthcare, food distribution, and logistics—access to finance so they may expand and formalize their operations.

This might also contribute to the local local local goods.

Through long-term investments and active ownership, Swedfund supports the establishment of more resilient enterprises, higher-quality jobs, and more inclusive economic growth.

As part of the Sustainable Development Goals of the UN, the investment also supports economic growth and decent work.

The investment supports markets with significant potential for inclusive growth and job creation in Southeast Asia and is consistent with Swedfund’s thematic fund investment approach.

The fund, which is run by Manila-based Navegar, offers active ownership and long-term funding to encourage business expansion in important domestic economic sectors.

According to the statement, while the Philippine economy has experienced steady growth in recent years, many small and medium-sized enterprises (SMEs) continue to face challenges in securing long-term financing. Around 70 percent of the country’s workforce is employed in the informal sector, where jobs often lack stability, social protection, and opportunities for skills development.

As a result, mid-sized businesses—which play a vital role as employers and service providers—often lack the capital and resources needed to expand, enhance productivity, and strengthen corporate governance.

“Creating more productive and formal jobs is essential for inclusive economic development,

“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,” said Helen Hagos, Investment Director, Food Systems & Strategic Investments at Swedfund.