Investors in Latin America are navigating the winds of change as new regimes have assumed power in key markets and asset managers seek to understand the policies and priorities of new administrations. The Bolsonaro regime in Brazil has continued and expanded the privatization program begun by the previous government, while in Mexico developers are selling assets to restructure their portfolios and their balance sheets because of a lack of greenfield opportunities.
With its long-term vision, institutional capital, especially from North American pension funds, continues to find and acquire stakes in major transportation and power assets in multi-million-dollar deals. Renewables projects are also starting to demonstrate their value as tradeable assets as investors seek exits from the portfolios and platforms they’ve developed over years.
With many early-mover infrastructure funds coming to the end of their terms, an array of assets are coming to market across the region and this will be a moment of truth for asset managers to provide to their LPs the double-digit returns for which Latin America has been famous.
Separately, Chile and Peru have proposals being discussed to modernize their power and energy regimes and Colombia is committing significant resources to a renewal of its rail network following the ongoing expansion of the highway system through the 4G initiative. While the principal corruption scandals have quietened in recent years and are arriving at a resolution, judicial pressures and financial penalties have forced numerous developers to divest assets across the region, providing opportunities to pick up attractive assets in many sectors. Industry experts on hand will be here to discuss these issues and others at today’s event.
Subscribe to 2020 email alerts
Something went wrong.
An error occurred trying to play the stream. Please reload the page and try again.