Navegar eyes major investments in Philippines

MANILA, Philippines — Manila-based private equity firm Navegar plans to make major investments in fast-growing businesses in the country over the next two years.

In a statement yesterday, Navegar co-founder and managing partner Noril Poblador said the firm is optimistic about the continued post-pandemic recovery of the country’s economy and intends to ramp up its investments despite macroeconomic concerns.

“The underlying factors that have propelled the country’s economic growth over the last 10 years remain intact, and excluding 2020, GDP has grown consistently at five percent or above, often ranking among the highest in Southeast Asia. The future looks even brighter with annual GDP growth projected to climb to 6.5 percent to 8.0 percent between 2024 and 2028, per the Development Budget Coordination Committee,” Poblador said.

The company emphasized that the driving force of this steady and robust performance is strong domestic consumption, underpinned by a large, well-educated, and youthful population of 114 million that continues to grow at a rate of 1.7 percent annually. It also highlighted that consumer spending is expected to be further boosted by higher employment levels, personal income tax cuts, and minimum wage increases this year.

“Furthermore, the government’s support across fiscal policy, infrastructure, and various industries has created a stable business environment, drawing more interest and raising confidence among investors. Now is the time to provide the right support to the entrepreneurial community and help them drive progress,” Navegar said.

The company said it is a firm believer in the country’s entrepreneurs and their ability to not only build successful, resilient companies but also affect positive change in society at large – creating jobs, championing innovation, and fueling the economy over time.

“In the face of the pandemic, we witnessed many of our portfolio companies weather the storm and emerge even stronger with improved operations, enhanced products and services, and greater profits. Beyond investing capital, our aim is to equip our companies along their unique journeys, providing resources and guidance to overcome challenges of all sizes,” Navegar co-founder and managing partner Javier Infante said.

Navegar assisted e-commerce enabler Great Deals in resource planning and establishing financial systems, allowing it to onboard numerous brick-and-mortar brands facing the surge in demand for e-commerce.

It said ultimately, consumers benefited from a better online shopping experience, characterized by wider product selection, seamless transactions, and faster delivery times.

“Navegar’s partnership was pivotal in helping us advance our financial capabilities. This enabled us to manage costs and stay profitable while dine-in was severely limited. Once the economy reopened, we embarked on a record year, opening 40 new stores and adding exciting brands to the portfolio, including Randy’s Donuts, Olive Garden, and Ember,” The Bistro Group president Paul Manuud said.

Since its inception in 2013, Navegar has over $300 million in assets under management and has taken notable stakes in companies, such as TaskUs, Intellicare, The Bistro Group, Royale Cold Storage, Great Deals E-commerce Corp., and Dali Discount AG.

“Even as we encounter more uncertainty in the near term, we’re confident that good companies, grounded in sound business fundamentals and armed with capable leadership, will endure and ultimately flourish, especially those with the right support,”Infante said.

“In the coming years, we expect to see more of these companies rise into the limelight, presenting an excellent window for investments that can catapult them to new heights and help them deliver substantial impact,” he said.

Moreover, amid economic volatility and a tighter fundraising backdrop, Navegar said it has noticed a spike in interest from companies seeking experienced strategic partners that can both fund their growth and provide hard-won advice for navigating today’s complex world.

“With stable capital and strengthened balance sheets, businesses can capitalize on valuable growth opportunities, positioning themselves for success well into the future. The Philippines holds enormous potential, and we stand ready to invest in and support more exceptional companies moving our country forward,”Poblador said.

Citing data from Bloomberg, Navegar emphasized that the Philippines recorded deal activity of $6.8 billion in 2022, making it its busiest year for mergers and acquisitions in nearly a decade.