Recent Carlyle Group Activity in Mexico: Is the Private Equity Market in Mexico on the Rise?

The Carlyle Group, a global private equity firm, recently entered the Mexican market in an ambitious push to capitalize on what is perceived to be an overall increase in private equity opportunities in Mexico. From a market perspective, Mexico has several competitive advantages over other economies, including greater openness to foreign investment, particularly owing to NAFTA and subsequent free-trade agreements by the United States; large-scale government privatization plans, particularly in the energy sector; and a stable and growing economy. This paper explores the attractiveness of the Mexican private equity market as well as the current strategy of The Carlyle Group there. The authors argue that due to Carlyle's unique capabilities as a local and global firm, as well as its tremendous political power and influence, Carlyle will be successful in Mexico.