by Victoria Hyde - PER
22. July 2011 17:08
Did you know that the Mexican economy has huge potential for private equity. The fast growing middle class, relative economic stability, international investment polices and taxation programs as well as laws to protect foreign investors means that Mexico is fast catching up with Brazil as the country in which to invest. There is great transparency for investors which significantly increases confidence.
Similarly, regulatory change in September 2010 allowing pension funds to invest in private equity has already increased the pace of growth. Prior to the change, fundraising tickets were maximum $140m USD. In 2011’s first trimester we have seen funds of over $220m USD being raised. I’m thrilled to be in the middle of it at PER’s new office in the heart of Mexico. To be involved in such a nascent market is exciting and challenging. And to be able to bring some European expertise into the recruitment and team building puts us right in the heart of the market.
So far, the Mexican private equity industry has worked without the benefit of debt. GPs tend to invest equity only, having a majority stake in the companies acquired. This has worked with success stories such as Volaris - the low cost airline company. If and when the banks start lending for transactions, the volume and size of transactions will increase. The potential is huge.
If the Mexican market is of interest, I would be delighted to share some of the economic and financial information we have and also facilitate introductions if you are visiting. Email me at victoria.hyde@perecruit.com and we can share our view of the potential with you.
Victoria Hyde - PER
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