Proparco, the French Development Agency’s private sector financing arm, has committed a $15 million- (P750 million) investment to the private equity fund Navegar Fund II which is expected to finance the growth of six to eight middle-market companies in the Philippines.
This investment brings the fund on the way to a final closing targeted at $150 million of P7.5 billion.
Proparco’s investment will help sustain the employment of more than 10,000 Filipinos, half of which are occupied by women.
The Navegar Fund II aims to further bridge the financial gap facing SMEs and targets sectors that benefit from strong domestic demand and that contribute to inclusive growth, such as health, education, logistics, and the production of essential goods and services.
This investment constitutes Proparco’s first ever operation in the Philippines. It will contribute to Navegar IIs first close of nearly $130 million.
Established in 2012, Navegar is a Philippines-focused, Manila-based private equity firm that provides growth capital to established companies.
It invests in both primary and secondary share offerings, and actively seeks to maximize the value of its portfolio companies by providing financial, operational and strategic guidance.
To strengthen the contribution of the private sector in achieving the Sustainable Development Goals, Proparco finances companies whose activities help create jobs and decent incomes, provide essential goods and services, and support the fight against climate change.