PH private capital hits USD 1.5 billion in 2025, Foxmont report shows

Private capital deployment in the Philippines reached USD 1.5 billion in 2025, a 34% increase from the previous record of USD 1.12 billion, according to the 2026 Philippine Private Capital Report released by Foxmont Capital Partners.

The growth was driven primarily by a 144% increase in debt financing to USD 490 million, alongside continued, albeit more moderate, growth in equity activity at 10% to USD 1.01 billion.

Total deal volume dropped to 72 from 88 the previous year, but average deal size grew 64% to just over USD 20 million, signaling a clear shift toward larger transactions and a more diversified mix of financing instruments.

Fintech remained the most active sector by deal count in 2025, while healthtech saw the largest increase in investment activity, reflecting rising focus on healthcare access and affordability.

By volume, local investors continued to drive around one-fourth of total deal flow, while deals where local and foreign investors jointly syndicated grew from 24% in 2024 to 35% in 2025.

Private capital in the country accounts for around 0.3% of annual gross domestic product, and its continued expansion signals the Philippines’ strong potential to emerge as a leading global economy, the report noted.

The report also highlighted that Philippine GDP growth slowed to 4.4% in 2025, primarily due to a significant reduction in public spending in the second half of the year. The reduction is seen as a shorter-term adjustment, with growth expected to normalize as spending levels stabilize.

On the digital economy front, the Philippines posted a 16% increase in gross merchandise value year-on-year, while the share of digital payments expanded from 10% of total transaction volume in 2018 to 57.4% in 2024, a 5.7-fold increase over six years.

The Bangko Sentral ng Pilipinas has set a target of reaching 60% to 70% digital payment share by 2028.

Meanwhile, Finance Secretary Frederick D. Go welcomed Foxmont’s plan to invest up to PHP 4 billion in the local startup ecosystem during a meeting held last week, calling it a strong signal of investor confidence and a boost to the country’s innovation-driven growth.

“Foxmont’s continued engagement with Philippine startups reflects strong confidence in the country’s long-term fundamentals and policies. Their investment will help our startups scale, strengthen Filipino talent, foster innovation, and build agile enterprises that deliver more accessible products and services to Filipinos,” Go said.

Foxmont is a Philippines-focused venture capital firm investing in high-growth, technology-enabled startups. The firm has previously raised and deployed two funds, investing over PHP 1 billion since 2018 in a portfolio of Philippine startups spanning fintech, e-commerce, and digital platforms. It is currently raising its third fund.

“Foxmont’s planned investments into the Philippines reflect our continued conviction in Philippine companies that can drive productivity, scale efficiently, and compete in higher-value sectors. We see strong opportunities to work alongside partners across government and the broader ecosystem to deepen private capital’s impact on the economy,” said Foxmont Managing Partner Franco Varona.

The Department of Finance reaffirmed its commitment to support Foxmont’s investment plans to grow the Philippine startup ecosystem, and generate more jobs and opportunities for Filipinos.