The Next Frontier

Mar 1, 2004

Mexico's nascent private equity industry is picking up as investors identify promising opportunities. All they need now is to find an exit.

Last October, Cabos Marinos, a small specialty rope manufacturer based in the Yucatán city of Mérida, bought a troubled competitor in the United States six times its size. Although Cabos had annual revenues of just $10 million, it pulled off this deal thanks to backing from private equity investors who want Cabos to weave distribution and branding capabilities from the US into a regional strategy. 

Grupo Mágico, a Mexican amusement park operator, has a similar story to tell. It is building a $39 million entertainment venue at Sawgrass Mills Mall in south Florida where children can work and shop in a fantasy city. Financed by the private equity group ZN Mexico Funds, Grupo Mágico plans to build more such venues throughout the US, modeled on its successful Ciudad de los Niños projects in Mexico

Investors think there is...

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