Reuters reports that BlackRock Inc is accelerating its push in Mexico and the rest of Latin America, making plans for its first launch of a private equity infrastructure fund targeting that market, a company document showed.
The launch is anticipated this year, according to the document, an infrastructure investing plan seen by Reuters on Monday May 9.
Such funds typically target large investors who can lock up their initial investments for a decade or more. The size of the fund was not disclosed, and BlackRock declined to comment.
Since its acquisition of Mexican investment company Infraestructura Institucional last year, BlackRock has said it has $1 billion USD committed by investors and plans to invest broadly across the energy, utility, transportation and communication infrastructure sectors in the region, especially in Mexico.
BlackRock started its infrastructure unit in 2011, and more recently has focused on growth in Latin America. The unit oversees physical property as well as relationships, from construction sub-contractors to government officials.
To date, the unit has been known for specializing in renewable-energy projects and being rooted in developed markets in Europe, the United States and Asia. The company has about $9 billion USD in infrastructure assets under management overall.
The firm has expanded, hiring foreign executives, including Manuel Sanchez, the former chief executive of Spanish renewable energy company Abengoa. BlackRock now has 26 people currently assigned in the Latin America infrastructure effort.
In its expansion south, BlackRock expects more government policy reforms of the sort that ended Mexico’s decades-old state energy monopoly across the Americas. Mexico’s economy grew more quickly than expected in the first quarter this year, preliminary data showed last month, after uneven U.S. demand and sinking oil prices shook the economy in 2015.
Company executives have said they expect large investors, including pension funds, to boost their stakes in investments such as railroads, pipelines and wind farms in the hope that they will return a stream of cash for pensioners and other investors.
In addition to expanding its Mexico City-based team, BlackRock last year took a joint stake worth around $900 million USD in a Mexican natural-gas pipeline project with U.S. private equity company First Reserve that is expected to start operating this year.
It is also looking at expanding to other countries, such as Colombia, Peru and Chile, company officials have said. New York-based BlackRock managed $4.7 trillion USD overall as of March 31.
more recommended stories
On Sixth Anniversary of 43 students disappearance, Mexico issues arrest warrants
Mexican authorities have issued dozens of.
Mexico will be the economy hardest hit by the pandemic: UNCTAD.
In 2020, Mexico will fall 10%,.
August 2020 is the most violent month on record in Mexico
August 2020 was the most violent.
Governor Mauricio Vila Dosal recognizes two outstanding Yucatecan nurses
Mérida, Yucatán, September 26, 2020.- The.
Mexico is sending 100 firefighters to Central California to help fight the SQF Complex Fires
FRESNO, California — Mexico has sent.
Mexico Wants to Pay US Water Debt, Stay Out of US Election
Mexico’s president is calling on angry.
Influencers visit the “Land of Mayab” to promote the destination on social networks
Through their social networks, young people.
Walmart opens distribution center in Yucatan
Walmart de México y Centroamérica announced.
Thieves steal business jet in Mexico, crash in Guatemala
Authorities say thieves stole a business.
Mexico is open and available for American travelers
Americans willing to travel abroad have.