Press release —
Swedfund invests in job creation and private sector growth in the Philippines
Swedfund has committed USD 15 million to Navegar Fund III, a private equity fund focusing on mid-sized companies in the Philippines. The investment aims to help local businesses grow, strengthen their operations, and create more productive and better-quality jobs.
The Philippine economy has seen steady growth in recent years, but many small and mid-sized companies still struggle to access long-term capital. Around 70 per cent of the workforce is employed informally, often in jobs that lack stability, social protection and opportunities for skills development. Mid-sized companies are important employers and service providers, yet many lack the resources needed to grow, improve productivity and strengthen 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,” says Helen Hagos, Investment Director, Food Systems & Strategic Investments at Swedfund.
The investment provide access to capital for mid-sized companies in consumer and business services to grow and formalise their operations, including in sectors such as healthcare, food distribution, and logistics. This contributes to stronger local value chains and can also improve access to essential goods and services across the Philippines.
Through long-term capital and active ownership, Swedfund supports the development of more resilient businesses, higher-quality jobs, and more inclusive economic growth. The investment also contributes to Decent Work and Economic Growth as part of the United Nations Sustainable Development Goals.
The investment is aligned with Swedfund’s thematic fund investment strategy and strengthens its exposure to Southeast Asia, supporting markets with strong potential for inclusive growth and job creation.
About Navegar Fund III
Navegar Fund III is a private equity fund investing in mid-sized companies in the Philippine, with a target fund size of USD 250 million. The fund is managed by Manila-based Navegar and provides long-term capital and active ownership to support business growth in key sectors of the domestic economy.
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About Swedfund
Swedfund is Sweden’s development finance institution with the mission to reduce poverty through sustainable investments in developing countries. Swedfund plays an important role in the implementation of the 2030 Agenda and the Paris Agreement on climate. Swedfund shares the same goal as development cooperation in general, but the tools Swedfund uses are different. Swedfund has two instruments to fulfil its mission: sustainable investments in the private sector and technical feasibility studies through the Project Accelerator targeting the public sector.
Swedfund's investments contribute to the creation of decent jobs and increased access to essential products and services such as electricity and food. Swedfund is a long-term investor and is additional and catalytic through its investments and by mobilising private capital. Swedfund's feasibility studies support sustainable public infrastructure development, trade, and export opportunities for Swedish solutions.
We are part of Swedish development cooperation, and we measure and report all our results. As a state-owned company, Swedfund is managed by the Ministry of Finance and financed through portfolio reflows and annual capital injections for which the Swedish Ministry for Foreign Affairs is responsible.
For more information: please visit www.swedfund.se/en
