Navegar seeks $150m for second Philippines PE fund

According to a disclosure, the International Finance Corporation (IFC) is considering a commitment of up to $20 million and may participate in co-investments. Navegar's first fund – a 50-50 joint venture between Brummer & Partners and two local partners – closed at PHP5 billion ($96 million) in 2013.

Brummer founder Patrik Brummer and Anders Stendebakken, an Asia-based managing director at the firm, will be partners in Fund II. Navegar - which is led by Honorio Poblador and Javier Infante - typically targets small to medium-sized enterprises (SME) in consumer and services-related segments with ticket sizes of up to $18 million.

The current portfolio includes The Bistro Group, a premium casual restaurant operator with more than 80 locations under brands including TGI Friday's, Italianni's, Denny's, and Buffalo Wild Wings. Previous investments include health services provider Intellicare, and TaskUS, a business process outsourcing (BPO) provider for start-ups. Both companies have been divested. 

The Philippines is considered a prospective but immature middle market investment destination due to an underdeveloped SME sector. Investors have expressed confidence in a rising consumer class and segments such as BPO, but see headwinds in infrastructure gaps, red tape, and currency risk. The peso has been among the worst performing currencies in ASEAN in recent years.

IFC contributed about $20 million to Navegar's debut, alongside Ocean Wilsons Holdings and fellow development financial institutions DEG and FMO.

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• Topics
• Southeast Asia
• Fundraising
• Growth
• Philippines
• Navegar
• IFC
• SME
• Brummer & Partners