The Mexican Association of Private Capital (Amexcap) has resources of 20,000 million dollars to invest in various projects and companies in Mexico, said Raúl Gallegos, president of the organization that represents private investment funds.
“There is more than 20,000 million dollars of capital available among the funds that seek investments and we estimate that they will be placed in a period of between four to seven years,” he said.
In an interview, he explained that although the rate of investment has slowed due to the complex environment with increases in the reference rate (10% in Mexico) and high inflation (which closed at 8.41% in October), they continue to find investment opportunities .
“We must be more creative to look for different options and new ways of doing things”, commented the president of Amexcap.
In this sense, he stressed that there is optimism on the part of investment funds, because in difficult times they continue to find options to invest in good projects and generate returns. “We are settling in,” he said.
One of the sectors where opportunities are opening up is real estate, which is an investment that protects against high inflationary environments, since real estate rents generally rise with inflation.
Another sector where there continues to be interest is among private debt funds, given the increase in rates and the caution of banks in granting loans, as well as in infrastructure projects that present more “regulatory clarity.”
continue to support
The president of Amexcap also spoke about the role of private equity funds as promoters of companies with the potential to be listed on the Mexican Stock Exchange.
On this, he explained that Amexcap is currently working with the Mexican Stock Exchange (BMV) and the Institutional Stock Exchange (Biva) looking for options to increase the dynamism of the market and to see how to promote small and medium-sized companies for an eventual Offer Initial Public (IPO).
“The stock exchanges are the ones that are doing the most work on the tax issue to promote IPOs. We participate more in giving them industry data and how many companies could leave, but not in direct work with the authorities,” said Raúl Gallegos.
The interviewee considered that the initiative to reform the Securities Market Law, which is currently being prepared by the country’s financial authorities in conjunction with the stock market union, is on the right track.
On the subject, he stressed that among the proposals is to make the list of companies more efficient and agile, reducing the requirements and the time in terms of procedures.
“It is on the right track (the initiative to reform the Law) and I think that we will soon see new companies listing their shares on the market and that there will not be so many delisting. Many of the public companies come from private capital funds”, emphasized the president of Amexcap.
