The International Finance Corporation (IFC), the World Bank Group’s private sector lending unit, plans to invest up to $40 million in Navegar Fund III L.P., a private equity fund targeting companies in the Philippines across multiple industries.
The IFC said its commitment would represent no more than 20 percent of the fund’s $250 million target size. In addition, the organization will allocate another $40 million for direct investments in selected companies alongside the fund.
Navegar is a sector-agnostic growth equity fund that has supported nine local companies so far, including the Bistro Group, Dali, and Bo’s Coffee. The fund targets investments ranging from $30 million to $50 million in Philippine-based companies in consumer goods, health care, logistics, and business services.
The fund may also invest up to 15 percent of its capital in businesses outside the Philippines, broadening its reach beyond the domestic market.
The IFC said the initiative aims to increase access to private equity capital and enhance value creation for small and mid-cap companies, including firms led by women. The fund will focus on organizational transformation, regional expansion, and improved governance and sustainability practices.
The IFC noted that the success of Navegar Fund III could demonstrate the commercial viability of country-focused private equity funds in the Philippines, attracting institutional investors and encouraging similar funds to enter the market.
Between 2020 and 2024, country-focused funds in the Philippines raised an average of $225 million per year, with limited fundraising since 2020. In fiscal year 2025, the IFC committed $71.7 billion to private companies and financial institutions in developing countries, supporting private sector solutions and mobilizing capital for inclusive economic growth.