Mexico Backs Alternatives With $233 Million Capital Injection

Article content(Bloomberg) — Mexico will invest $233 million in a government-backed fund that invests in alternative assets, its first fresh injection of capital in a decade, to finance projects in the country. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe platform, known as Fondo de Fondos, expects to receive 4 billion pesos ($233.2 million) in capital this year, its head Liliana Reyes Castrejón said in an interview in Mexico City. The funding will come from national development banks Nacional Financiera and Banco Nacional de Comercio Exterior, according to Reyes.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle content“I’d say the investments should begin to materialize in the second half of the year,” she said, noting that details on the exact structure and vehicles to be invested in are being ironed out. Reyes spoke on the sidelines of a launch event for an initiative supporting Mexican companies working in innovative sectors, including artificial intelligence, clean energy and health and biotechnology.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentFounded in 2006 by four Mexican development banks, Fondo de Fondos has allocated $1.1 billion for investments in strategies including private capital, energy, venture capital and impact investment, according to its website. The platform also manages investment mandates for investors including pension funds and family offices. Article contentNearly 60% of Fondo de Fondos’ investments are within Mexico, with technology making up nearly half its portfolio, according to a fact sheet.Article contentThe effort could help kick off a wave of private investment, according to Pablo Coballasi, chairman of private capital investment group Asociación Mexicana de Capital Privado, or Amexcap. Historically, Fondo de Fondos contributes 10% of the money to vehicles in which it participates, with other investors joining the effort to make up the other 90%, Coballasi said.Article content“This is great news for the private equity sector as it demonstrates the government’s commitment to promoting innovation and supporting private investment,” he said. “This really is a seed that will trigger the industry’s growth.”Article content—With assistance from Gonzalo Soto.Article contentTrending Canada's housing market suffers largest price decline among major economies, says BIS Real Estate Australia ships LNG 25,000 kilometres to Eastern Canada amid Asian slump Oil & Gas B.C. widow worried about retirement income with OAS clawbacks Family Finance Posthaste: Canadian dollar is facing a big risk that markets seem to be overlooking News Garry Marr: Mexico chaos shows it's time to start thinking of your vacation as an investment and hedge your bets Personal Finance Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Canada's housing market suffers largest price decline among major economies, says BIS Real Estate Australia ships LNG 25,000 kilometres to Eastern Canada amid Asian slump Oil & Gas B.C. widow worried about retirement income with OAS clawbacks Family Finance Posthaste: Canadian dollar is facing a big risk that markets seem to be overlooking News Garry Marr: Mexico chaos shows it's time to start thinking of your vacation as an investment and hedge your bets Personal Finance