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Friday, March 29, 2024

Private equity firm Navegar eyes more investments in PH

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Manila-based private equity firm Navegar announced Tuesday it is eyeing major investments in fast-growing businesses in the Philippines.

Navegar co-founder and managing partner Nori Poblador said the equity firm is optimistic about the continued post-pandemic recovery of the economy and planned to ramp up 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 5 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 percent between 2024 and 2028, per the Development Budget Coordination Committee,” he said.

He said the driving force of the steady and robust performance is a 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. This year, consumer spending is expected to be boosted by higher employment levels, personal income tax cuts and minimum wage increases.

The firm said the government’s support across fiscal policy, infrastructure and various industries created a stable business environment, drawing more interest and raising confidence among investors.

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Navegar co-founder and managing partner Javier Infante said the company is a firm believer in Filipino 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,” he 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.

The Bistro Group president Paul Manuud said Navegar’s partnership was pivotal in helping the brand advance its financial capabilities, enabling cost management and staying profitable while dine-in was severely limited during the pandemic.

The Bistro Group reopened 40 stores and added new brands to the portfolio, including Randy’s Donuts, Olive Garden and Ember.

Navegar said that Amid economic volatility and a tighter fundraising backdrop, it noticed a spike in interest from companies seeking experienced strategic partners that could 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,” it said.

Citing Bloomberg, Navegar noted 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. Looking forward, Navegar anticipates the high demand for capital to continue, even as investors place more importance on business performance and valuations.

Navegar is the largest private equity firm in the Philippines with over $300 million under management across two funds.

Since its inception in 2013, Navegar has played an instrumental role in fueling the growth of some of the nation’s most prominent market leaders, including restaurant operator The Bistro Group, NASDAQ-listed outsourcer TaskUs, e-commerce enabler Great Deals and logistics company Royale Cold Storage by offering capital and strategic guidance.

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