Mexico Infrastructure Partners plans $1bn US-focused fund

Mexico Infrastructure Partners is preparing to launch its first US-focused fund targeting about $1 billion, Infrastructure Investor understands.

The firm has launched six funds since 2014, five of which have been listed on the Mexico Stock Exchange and one of which was a private fund targeting assets in Colombia and Peru. It closed its latest fund – FEXI21 – last month on 22.1 billion Mexican pesos ($1.1 billion; €0.9 billion) and which has so far, acquired five Mexican highways. MIP has raised about $2.7 billion across its six funds.

MIP’s Mexico-focused funds have been raised as listed funds to comply with regulations on how Mexican pension funds invest in infrastructure. Investors from MIP’s debut 2014-vintage fund, EXI, rolled over their interests into the latest offering, and are believed to have earned an 18 percent IRR from that vehicle.

MIP now plans to start fundraising for a private markets fund targeting assets in the US across the infrastructure spectrum, with fundraising expected to take place across most of 2022. MIP will look to raise from some of its existing Mexican investor base, as well as from investors in the US. It is believed to be eyeing particularly strong opportunities in some southern US states, which have strong links to Mexico in the energy and transport sectors.

In addition to its latest highway acquisition, MIP also owns a gas pipeline asset, renewables, 600 telecoms towers and a 1,500km fibre-optic network, as well as five regional airports in Colombia.

MIP is led by chief executive Mario Gabriel Budebo, who prior to the firm’s launch in 2014 held roles in the Mexican government on matters related to pension funds and hydrocarbons. It is an affiliate of the London and US-based Faros Infrastructure Partners.