42102 - Navegar Fund II, L.P.

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Summary of Investment Information

Project Number

42102

Company Name

NAVEGAR FUND II, LP

Date SPI Disclosed

Feb 25, 2019

Country

Philippines

Region

East Asia and the Pacific

Projected Board Date

Apr 19, 2019

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Dec 21, 2022

Department

Equity Portfolio Management

Industry

Funds

Previous Events

Approved : Jun 14, 2019
Signed : Jun 27, 2019
Invested : Sep 16, 2019

Sector

Growth Equity Fund

Project Description

Navegar II L.P. (“the Fund”), a Cayman Islands exempted limited partnership, is a private equity (“PE”) fund seeking $150 million in capital commitments to build a portfolio of equity and equity-linked investments in middle market, growth-oriented companies in the Philippines.

Associated Advisory Engagement

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	20.0

Development Impact

The expected development impact of the Fund includes (i) improved access to long-term, patient, risk capital for fund investees which should lead to (ii) accelerated investee growth delivered via a deliberated approach from the General Partner through collaborating with management teams and providing hands-on financial, operations, strategic and governance guidance; (iii) increased PE investment levels are expected to improve market competitiveness by small and mid-cap companies supported by good PE investors and (iv) expanded access to institutional capital in the Philippines anticipated from new institutional and private investors.

Through this investment, IFC would support a fund manager in a country where PE capital is still very scarce. IFC's investment in the Fund is expected to demonstrate confidence in the Manager, catalyzing commitments from other investors, especially in the current tough fund-raising environment and the lack of private equity investors' familiarity with the Philippines. IFC is also expected to play significant role in Fund's structuring and governance, both before the Fund's first closing as well as throughout the Fund's life. IFC would also play an important role in the maintenance, improvement and evolution of the Environmental and Social Management System (ESMS) in the Fund. Finally, through potential co-investments, IFC would be able to work together with the Fund Manager to invest in deals that otherwise would be too big for the Fund to invest in by itself.

E&S Category Rationale / Risks and Mitigation

The proposed project entails an IFC equity investment into Navegar Fund II. The Fund's pipeline sectoral breakdown includes healthcare, manufacturing, and consumer services. Most transactions are expected to be of medium to low E&S risk. Given fund's investments strategy and the existing pipeline there is very limited likelihood for investments in companies exposed to significant E&S risks such as a) involuntary resettlement, b) risk of adverse impacts on Indigenous Peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage or d) significant Occupational Health and Safety risks. Therefore, the project has been categorized as FI-2 according to the IFC's Sustainability Framework. The Fund will not invest in coal-related activities.

In accordance with IFC's Access to Information Policy, IFC will periodically disclose the names, locations and sectors of sub-projects that have been supported by IFC investments through private equity funds, subject to regulatory constraints and market sensitivities. The sub-project(s) listed below reflect(s) the status of the portfolio as of January 1, 2025.

Investee	Country Of Investment	Sector
MDI Novare	Philippines	R-BA - Computer Systems Design and Related Services (System Integration, Custom Computer Programming, IT Services etc.)
Cloudstaff	Philippines	R-AC- Other Services (Including IT Enabled Services)
DALI	Philippines	Q-BA- Grocery Retail (Supermarkets, Hypermarkets, Convenience Stores etc.)
Great Deals	Philippines	Q-BF- Internet Retailers (e-Commerce Companies, platforms, marketplace etc.)
Inteluck	Singapore	E-AE- Other (Including General Freight Trucking)
_MDI	Philippines	R-BA- Computer Systems Design and Related Services (System Integration, Custom Computer Programming, IT Services etc.)

The main E&S risks and impacts of the project derive from the E&S risks associated with the Fund's investment activities, its capacity and systems in place to manage these risks. Navegar GP (the Fund's manager) has assigned E&S roles and responsibilities, and developed and implemented an E&S management system (ESMS) aligned with performance standards requirements. The Fund will be required to maintain the existing ESMS, including an external communications mechanism, in line with the IFC requirements to screen and assess investments against the IFC Exclusion List, local laws and regulations and the Performance Standards.

Contacts

For Inquiries About the Project, Contact

Navegar GP Ltd.
Mr. Honorio Poblador, IV
Partner
+63 2 808 4566
nori.poblador@navegar.com.ph
Makati Avenue, Makati City, Philippines 1226
http://navegar.com.ph/navegar-fund/

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IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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