Mexico’s private pension funds, known as Afores, are reportedly set to invest more than $1 billion in asset classes such as real estate, infrastructure and private equity.
Ten funds have been approved by the Mexican stock exchange and financial regulators for pension fund investments after undergoing due diligence, Reuters has reported.
Each of the 10 funds, four of which specialise in real estate holdings, is reportedly hoping to raise between $125 million and $225 million from the pension funds. There are 14 private pension funds in total.
“I don’t want to say that all these projects will be placed,” the head of Mexico’s stock exchange Luis Tellez told Reuters, “but there is real appetite for capital”.
More than 20 private equity fund chiefs have reportedly been discussing opportunities and drawbacks for Afore investment in Monterrey, Mexico this week. A spokesperson from Mexico’s EMX Capital investment firm was not immediately available for comment.