Chart of the Week: Latin American LPs Segmentation

Corporate pension fund and pension fund are the largest investor group in Latin America and make up 72% of the total number.

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Infrastructure Investor’s Research & Analytics team monitors infrastructure fund LPs’ investments around the world. We have profiled over 76 institutional investors in Latin American region in the asset class as to date. The biggest investor group is Corporate Pension which makes up 46% of the total number. It is followed by Pension Fund, Bank/ Financial Services and Government Related Organization, accounting for 26%, 16% and 5% respectively.

With 16 Latin American-focused unlisted funds in market and 7 deals completed in Q2 2014 (PPPs included), it represents opportunities not only for foreign investors, but also domestic investors. For example, Afore XXI Banorte is allowed to invest up to 8% of its assets in Capital Development Certificates (CKDs) which includes unlisted infrastructure funds and committed to the MXN5.5billion Macquarie Mexican Infrastructure Fund (MMIF); And Prima AFP's appetite has shifted away from broad based global funds towards niche strategies such as regional funds and committed to the $87 million Sigma Fondo de Inversión en Infraestructura. We see increasing interest in the region from foreign investors, but domestic players still play an important role in the infrastructure market.