Chart of the week: Mexico-focused private equity fundraising

Slow fundraising in Mexico looks set to pick up with $1.74 billion in market targeting the country


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Since 2010, private equity fundraising targeting investments into Mexico has been inconsistent in terms of the number of funds closed and aggregate capital raised year on year. The peak fundraising year for total capital gathered in the period analysed was 2010, in which six Mexico-focused funds raised $935.87 million from investors. However, in 2012 the highest number of funds targeting investments into the country closed. In this year, ten funds raised $753.8 million.

In H1 2015, no funds investing exclusively into Mexico reached final close. Similarly, in 2014 just one fund closed over the course of the year. Alta Growth Capital Mexico Fund II, a growth equity vehicle managed by Alta Growth Capital, raised $142 million to invest into the country. The largest Mexico-focused fund closed between 2010 and H1 2015 was Nexxus Capital VI managed by Nexxus Capital. The growth equity vehicle closed in November 2013, having collected $550 million from investors.

There has been a significant decrease in foreign interest in Latin American fundraising opportunities since 2014, yet Mexico’s improving regulatory environment and expanding economy make it a fertile market for future investment. As at 1 July 2015, there are eight Mexico-focused vehicles on the road targeting a total of $1.74 billion. The largest of these funds is AGC Controladora’s Northgate Mexico with a target size of $823.25 million. If the growth equity fund hits its target, it will be the largest fund focused on the country to close since 2010.