Mexican pension funds (the Afores) are sitting on more than US$409B, and they’ve just been given the green light to invest up to 30 percent of that capital in alternative assets, including venture capital.
For the first time, long-term local capital will be able to finance startups, scaleups, and digital infrastructure, and not just public debt or fixed income.
What’s interesting is not just the amount, but the nature of the capital: institutional, stable, with a national development mindset and incentives aligned with local growth.
The same funds that finance roads, industrial parks, or energy projects will now also be able to back tech infrastructure, fintechs, proptechs, logistics platforms, and SME lending systems.
At a Bloomberg conference, Mexican pension funds’ directors explicitly said that alternative assets “generate excess returns that will outperform public markets.” And global heavyweights like Ares, Apollo, HPS, and Blue Owl are now turning their attention to Mexico too.
Of course, this capital is not going to early stages (Seed, Series A), but it does mean more funding for growth equity (Series B, C ), which is exactly what is needed to drive more exits.
That’s still good news. More capital in the broader ecosystem helps. More exit opportunities help early-stage VCs gain liquidity and recycle capital.
And this is just the beginning, as these US$409B are projected to reach US$650B by 2030.
Long LATAM 🫡