Sweden’s development finance institution Swedfund has committed $15 million to Navegar Fund III, a private equity fund that invests in mid-sized companies in the Philippines. The fund is managed by Manila-based Navegar and has a target size of $250 million.
The investment is intended to address gaps in access to long-term capital for mid-sized Philippine businesses. According to Swedfund, approximately 70 percent of the Philippine workforce is employed informally, often without job stability, social protection, or opportunities for skills development. Mid-sized companies serve as significant employers and service providers in the country but frequently lack the resources required to expand, improve productivity, and strengthen governance.
Navegar Fund III will provide capital to mid-sized companies operating in consumer and business services, including healthcare, food distribution, and logistics, to support their growth and the formalization of their operations. Swedfund stated that the investment is expected to strengthen local value chains and improve access to essential goods and services across the Philippines.
“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 for Food Systems & Strategic Investments at Swedfund.
Swedfund said its approach combines long-term capital with active ownership in the businesses it invests in, with stated objectives of supporting more resilient companies, higher-quality jobs, and more inclusive economic growth. The investment is also linked to the United Nations Sustainable Development Goal on Decent Work and Economic Growth.
The commitment is part of Swedfund’s broader thematic fund investment strategy and reflects an expansion of its presence in Southeast Asia. Swedfund is owned by the Swedish state, managed by Sweden’s Ministry of Finance, and operates with a mandate to reduce poverty through investments in developing countries.
Navegar has not publicly disclosed the specific companies that Navegar Fund III has invested in or plans to invest in within the Philippines.
