Swedish asset manager backs $120m Philippines fund

The fund - a 50-50 partnership between Brummer & Partners and two local partners, Honorio Poblador IV and Javier Infante - will target growth stage investments in companies looking to expand operations and acquire new businesses.

"This will serve as an alternative source of capital for private companies who are not publicly-listed but are also relatively big and mature," Poblador said.

A total of 20 investors have committed capital, including World Bank investment arm International Finance Corporation (IFC), which is committing $20 million. The LP base includes several European family offices.

Navegar will invest in 8-10 companies with an average ticket size of $10-20 million. The first two investments are expected to come within the first year, with the fund aiming to be fully committed in the next five years. Poblador added that the fund intends to make minority investments while seeking active participation on the boards of target companies.

Patrik Brummer, chairman and founder of Brummer & Partners, said he believed there is still a huge market for private equity funds in the Philippines.

"Every time I visit the Philippines I am buoyed by the country's solid fundamentals and the predictable growth of the overall economy," he said. "It is refreshing to see such a dynamic and positive business environment in light of the otherwise challenging circumstances in the developed world."

Navegar is not the only Philippines-focused vehicle to launch in recent months. Local GP Angeon Advisors is currently raising its maiden fund with a target of $100 million. 

The Philippines, which saw the highest GDP growth in the Southeast Asia last year at 6.6%, is one of several Southeast Asian nations that have become increasingly appealing to GPs looking to tap regional growth outside of Indonesia, where there is increasing competition for deals.

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• Topics
• Southeast Asia
• Europe
• Fundraising
• IFC
• Philippines
• Fundraising
• Growth capital