Swedish development finance institution Swedfund has allocated USD 15 million to Navegar Fund III, a private equity vehicle targeting mid-sized corporations in the Philippines. The investment is designed to provide long-term growth capital to domestic businesses, improve operational structures and encourage the creation of high-quality formal employment.

Despite steady macroeconomic expansion in the Philippines, smaller and medium-sized firms frequently encounter obstacles when trying to secure long-term capital. Statistics indicate that approximately 70 per cent of the national workforce operates within the informal economy. These positions typically lack financial stability, social protections and clear pathways for professional development. While mid-sized enterprises act as vital domestic employers and service providers, many lack the requisite financing to scale operations, increase productivity and implement corporate governance standards.

The capital deployment will specifically target mid-market businesses operating across consumer and business services, covering essential sectors such as healthcare, food distribution and logistics. This focus aims to strengthen local value chains and enhance consumer access to basic goods and services.

“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 commitment aligns with the thematic fund investment strategy of Swedfund, deepening its presence in Southeast Asian markets that demonstrate significant potential for inclusive economic development. Through active ownership practices, the institutional investor seeks to build corporate resilience and support the United Nations Sustainable Development Goals concerning Decent Work and Economic Growth.