MANILA, PHILIPPINES (13 July 2020) — The Asian Development Bank (ADB) has signed agreements for a $10 million equity investment in Navegar II L.P. (Navegar II), a private equity fund that invests primarily in Philippine companies. The investment will help to provide much-needed capital for middle-market companies in the Philippines, helping them to adjust to dramatic changes in the market landscape caused by the coronavirus disease (COVID-19) pandemic.
Navegar II collaborates with business owners and management teams to create long-term development impacts and shareholder value. The $200 million fund will invest primarily in healthcare, education, business services, logistics, and consumer goods and services.
“ADB’s investment will help well-managed middle-market companies to increase operational efficiency and adopt new technology to adjust their business models to the ‘new normal’ caused by the pandemic,” said Director of ADB’s Private Sector Investment Funds and Special Initiatives Division Janette Hall. “Through Navegar II, ADB will help to channel growth capital to businesses operating in critical sectors while providing development benefits for the people of the Philippines.”
ADB’s investment aims to help drive economic growth, support companies in expanding their operations, create sustainable jobs, and boost tax revenues. It also aims to encourage the development of private equity as an asset class in the Philippines, catalyze foreign investment, and deepen domestic capital markets.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.