By Justine Irish D. Tabile, Reporter
SINGAPORE consumer-focused investor Venturi Partners is scouting for more consumer brands in the Philippines on which to deploy its second fund worth $225 million, noting that it considers the consumer market here to have strong prospects.
“I think the Philippines is one of our core markets. It is our second market after India, and that is because we believe strongly in the consumer opportunity in the Philippines,” Venturi Partners Founder and Managing Partner Nicholas Cator told BusinessWorld.
“We believe strongly in the local founders and entrepreneurs. And we are looking forward to continuing to deploy our second fund in a number of Filipino consumer brands,” he added.
He said Venturi Partners sees opportunities across all channels in the Philippine consumer market.
“We’ve seen some in retail, e-commerce, mom and baby, beauty and personal care, and food and beverage. So, basically, it’s a wide range. For us, it’s about finding brands that reach a certain scale where we can underwrite a clear exit,” he said.
The company closed its first deal from its second fund worth $150 million in June, exceeding its target first close of $130 million.
If fully deployed, the $225-million fund will be 25% bigger than the first fund of $180 million. Venturi expects to invest in about 10 consumer brands.
“We’ve made two investments in the Philippines to date and hope that in the course of the second fund we will also be able to do some more,” Mr. Cator said.
From the first fund, Venturi Partners invested a fifth in Pickup Coffee and the DALI discount grocery chain.
“We are looking at some very exciting categories. I can’t say specifically which ones, but always similar to what we have done in the past, focus on consumer brands and focus on disrupting consumer brands,” he added.
He said that he expects consumption to do well over the next year, especially for Pickup Coffee and DALI, which are both at low price points.
“We have quite a strong positive view on consumer growth in the Philippines over the next five years,” he said.
He said the company is on the lookout for disruption that may result from artificial intelligence adoption and its impact on the business process outsourcing industry, which accounts for a big share of Philippine gross domestic product.
“But I think that from the business leaders that we’re talking to, it’s something that’s really top of mind, and so hopefully we’ll be able to adapt over the next few years,” he added.