MEXICO Law and Practice Contributed by: Alejandro Stamoglou, Jesús Pérez Alcántar and Julio Jiménez Manrique, Bello, Gallardo, Bonequi y García, S.C.
Therefore, the private credit market represents an attractive opportunity for fund managers, companies seeking financing, and institutional investors, aligning with global trends that favour more flexible structures over highly regulated public markets. 1.3 Acquisition Finance According to the Quarterly Survey on Credit Market Conditions conducted by the Bank of Mexico (July– September 2025), Mexican companies primarily relied on supplier financing (56.4%) and commercial bank credit (25.3%) for their general financing needs, while other sources such as intra-group financing, develop - ment banks, foreign banks and debt issuance repre - sented smaller shares. This indicates that, for day- to-day operational purposes, private credit is not the most frequently reported source. However, as outlined in 1.1 Private Credit Market , aggregate data on private sector indebtedness shows that non-bank financing, which includes private credit, accounts for 62.2% of total financing, confirming its structural importance in the Mexican market. There - fore, while it is not the dominant source for routine operational needs, private credit remains a highly rel - evant option in the overall financing mix and continues to be preferred in specialised corporate transactions, thanks to advantages such as flexibility, speed of execution and bespoke structuring. 1.4 Challenges The Mexican economy, like other jurisdictions, has been affected by extraordinary political, economic and geopolitical events that have partially constrained growth. Although a rebound was anticipated, largely driven by the nearshoring trend, recent trade policies implemented by the current US administration have prompted a reassessment of this outlook, which ini - tially suggested a significant boost for Mexico’s econ - omy. Moreover, domestic factors such as the recent judicial reform, substantially altering Mexico’s justice system, and the dissolution of several regulatory bodies in key sectors, including antitrust and telecommunications, may negatively impact investor confidence and, con - sequently, the performance of the economy. These developments represent structural challenges that
could slow the expansion of the private credit market in the short to medium term. On the other hand, in recent years we have observed an increasingly active participation of pension funds ( Afores ) in the private credit market, driven by the significant resources they manage and their interest in alternative investment schemes that offer higher returns. This trend has created meaningful opportu - nities for global private capital managers. In this context, a key challenge will be the design of tailored investment vehicles that, on one hand, com - ply with the regulatory limits and requirements appli - cable to Afores and, on the other, efficiently channel these resources into strategies that deliver superior returns compared to other asset classes. 1.5 Sponsored/Non-Sponsored Debt Private credit providers in Mexico primarily focus on private equity sponsors and their portfolio companies, particularly Pymes . However, the origination activity remains concentrated, with a relatively narrow pipe - line of transactions, which in practice has involved a limited number of deals (estimated at around 50 to 60 Pymes ) highlighting the early stage of development of this segment compared to more mature markets. 1.6 Recurring Revenue Deals and Late-Stage Lending In Mexico, private credit providers have demonstrat - ed significant activity in recent years. In addition to multiple-purpose financial institutions (SOFOMES), there has been an increasingly frequent presence of private equity fund managers, both international and local, who have identified opportunities to offer flex - ible and tailored financing solutions. This trend reflects a growing demand for alternatives to traditional chan - nels, driven by factors such as speed of execution, bespoke structuring and strong investor appetite for assets that deliver attractive returns. 1.7 Deal Sizes, Fund Sizes and Fundraising In Mexico, private credit funds typically range in size from USD70 million to USD100 million, reflecting the scale of the local market and the appetite of institu - tional investors. Fundraising challenges often relate to building a robust pipeline of borrowers that meet
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