Three years after its creation, the overwhelming majority of Maharlika’s capital nonetheless sits in banks gathering curiosity, although the sovereign wealth fund has cautiously began investing in ports, energy, and mining
MANILA, Philippines – Three years after its rocky begin, the Maharlika Funding Company (MIC) can now boast of earnings, funding returns, and an unlikely new distinction: it’s amongst Taguig Metropolis’s high 100 taxpayers.
The popularity lined tax 12 months 2025 and got here lower than two years after Maharlika established its headquarters within the metropolis. The Taguig Metropolis authorities didn’t disclose MIC’s precise rating or the tax quantity it paid, however the award gives the still-young sovereign wealth fund one other badge of legitimacy after its creation and launch was dogged by questions over governance, political interference, and the usage of capital from two state-owned banks.
Its monetary statements, nevertheless, present a fund that’s nonetheless juggling two opposing identities: an energetic investor in strategic infrastructure and a really giant depositor incomes curiosity whereas ready for tasks.
Primarily based on its unaudited monetary statements for FY 2025, Maharlika earned a internet revenue of P2.36 billion for the 12 months, down almost 12% from the earlier 12 months as the price of constructing the establishment rose sharply. Working bills jumped greater than fivefold to P479 million, together with P213 million spent on skilled providers for advisers, due diligence, and transaction work.
This may sound like loads of cash to spend for expertise, however this improve in prices just isn’t essentially uncommon for a younger funding fund assembling a group and evaluating advanced offers. MIC additionally mentioned its bills remained properly beneath the statutory cap of two% of funds underneath administration. Nonetheless, the sharp rise helps clarify why revenue declined at the same time as enterprise revenue remained broadly flat.
Maharlika additionally remained worthwhile in early 2026, incomes P628.8 million within the first quarter.
So the place is MIC truly incomes cash from? A have a look at its unaudited 2025 outcomes reveals that almost all of it nonetheless got here from funds ready to be invested. The overwhelming majority of enterprise revenue was curiosity earned from placements with Landbank of the Philippines (Landbank), Growth Financial institution of the Philippines (DBP), and the Bangko Sentral ng Pilipinas, relatively than returns from strategic tasks.
This can be a cautious method. Parking cash in low-risk devices is arguably higher than dashing public funds into poorly studied tasks. Nevertheless it additionally means Maharlika’s early profitability just isn’t but that of a sovereign wealth fund making transformative investments into big-ticket tasks.
What are Maharlika’s present investments?
Of the P75 billion in preliminary money capital contributed by Landbank and DBP, Maharlika had deployed solely P5.9 billion, or lower than 8%, into strategic investments by the top of 2025. It nonetheless held P71.1 billion in money and money equivalents, principally in interest-bearing placements.
The P5.9 billion was unfold throughout three early bets:
- Round P4.2 billion in Asian Terminals Inc. MIC held ATI shares valued at P3.1 billion at year-end, whereas one other P1.11 billion was recorded as a deposit for inventory purchases that had but to be accomplished. Its stake stood at about 4.8%, with the contemplated transactions probably elevating this to as a lot as 11.2%. The funding was carrying unrealized losses on the time.
- P1.2 billion in Synergy Grid and Growth Philippines. The listed firm holds an oblique curiosity in Nationwide Grid Company of the Philippines. MIC mentioned the funding generated P589.2 million in dividends and unrealized beneficial properties in 2025.
- P426.9 million in Makilala Mining Firm. The bridge mortgage financed engineering, feasibility research, and early improvement work for a copper-gold mission. It generated P18.4 million in curiosity in 2025. MIC has since exited the funding. (READ: [Vantage Point] Is Maharlika’s mining enterprise price it?)
The portfolio reveals Maharlika concentrating its earliest bets in its 4 strategic pillars: vitality, logistics, mining, and agriculture.
However Maharlika’s introduced pipeline is significantly broader than its present investments:
- Petron credit score line. MIC supplied Petron a short-term revolving facility of as much as P15 billion for crude oil and petroleum-product purchases. The deal was pitched as each an funding and a fuel-security measure, though MIC has not disclosed whether or not Petron has drawn from it.
- Mindoro and Palawan grids. MIC is finding out attainable investments within the two island grids. In Mindoro, it might purchase and rehabilitate transmission property owned by the Nationwide Energy Company. In Palawan, it has signed a memorandum of settlement to fund preliminary technical and monetary research earlier than deciding whether or not to take a position.
- Bataan gas storage. MIC signed an exploratory settlement with the Philippine Nationwide Oil Firm for a attainable petroleum storage facility focused for 2028. The mission stays underneath analysis, together with its financing construction and potential private-sector companions.
- Agriculture. This stays a conspicuous hole. Though MIC has recognized the sector as certainly one of its 4 precedence pillars, it has but to announce a accomplished funding deal or exploratory talks with a selected firm. Its most concrete transfer thus far was a 2025 settlement with Thailand’s Charoen Pokphand Group to discover alternatives in agri-food modernization, however no particular mission has emerged.
The tougher check
Maharlika is now making ready to use for normal membership within the Worldwide Discussion board of Sovereign Wealth Funds. It lately partnered with Morocco’s Ithmar Capital on governance, benchmarking, inside audit, company planning, and compliance with the Santiago Ideas adopted by main sovereign funds.
Now, the query was by no means whether or not Maharlika might generate income on paper. With billions of pesos parked in interest-bearing deposits, incomes a revenue was at all times going to be the simple half.
The tougher check is whether or not MIC can deploy public cash into productive property whereas defending the fund from political stress, weak offers, and conflicts of curiosity. That is one thing it has but to show. Nonetheless, sovereign funds usually take time to construct a reputable pipeline, and Maharlika has purpose to maneuver fastidiously after its controversial begin.
MIC chief govt officer Rafael Consing Jr. has successfully acknowledged that the fund remains to be early into its life, describing it as “an funding company performing as a start-up at this stage working inside the framework of presidency guidelines and laws,” in accordance with an MIC press launch. – Rappler.com
