Key Takeaways
- • Gramercy has closed a $45 million senior secured facility to EMPower, an independent power generator focused on Mexico's industrial sector, signaling growing institutional appetite for private credit in Mexican power infrastructure.
- • Apollo Global Management is targeting up to $20 billion in private credit deployments across Mexico, positioning infrastructure and corporate financing as a core growth area amid structural demand for alternative financing solutions.
- • Mexico's private credit market generated 60 transactions valued at approximately $1.1 billion in 2025, reflecting accelerating activity driven by nearshoring, manufacturing expansion, and underserved SME financing needs in an underbanked market.
- • Mexico's electricity sector faces structural capacity constraints due to rising industrial demand, creating financing gaps where private credit providers offer faster execution and longer maturities than traditional banking channels.
- • Apollo's existing Mexican portfolio—including a $300 million power asset financing through Mexico Infrastructure Partners and prior transactions—demonstrates major asset managers' commitment to capturing infrastructure financing opportunities despite policy constraints on private sector participation.
Summary
Gramercy's $45 million senior secured facility to EMPower represents a concrete expression of institutional private credit appetite targeting Mexico's power sector, where industrial nearshoring and manufacturing investment are driving acute electricity demand. The transaction underscores a broader market pattern: Mexico's private credit ecosystem generated 60 transactions totaling approximately $1.1 billion in 2025, reflecting accelerating deal flow as traditional banking infrastructure proves inadequate for financing gaps in both infrastructure and corporate lending.
Apollo Global Management has emerged as a major capital allocator in this space, committing to deploy up to $20 billion in private credit across Mexico. The strategy reflects Apollo's identification of infrastructure financing as a long-term growth vector, capitalizing on structural demand from Mexico's industrial expansion corridor. The firm is actively engaged in infrastructure transactions—including a $300 million private placement of senior secured notes for Mexico Infrastructure Partners financing power assets previously held by Iberdrola—while offering borrowers execution speed and loan maturities superior to commercial and development bank offerings. This positioning aligns with President Claudia Sheinbaum's economic agenda attracting private capital to infrastructure, though project development pace has occasionally lagged expectations.
Mexico's electricity sector faces a fundamental supply-demand imbalance. Industrial surge driven by nearshoring and new manufacturing investments has accelerated power demand in key industrial corridors, while the nation's electricity capacity struggles to maintain adequate reserve margins and contains volatile capacity pricing. The private sector has been called upon to develop renewable supply and grid modernization, though recent policy measures limit private investors to minority equity stakes in electricity generation. This regulatory framework creates a bifurcated financing landscape where private credit and senior secured lending structures offer attractive risk-adjusted returns relative to equity participation constraints.
The broader Mexican private credit market reflects an underbanked economy with severe financing gaps among SMEs and corporates. Traditional banking inefficiencies have created a structural void that alternative credit providers increasingly address. Private credit activity is expected to continue accelerating as nearshoring investments mature and infrastructure modernization requirements intensify across power, renewable energy, and telecommunications sectors. For institutional investors, Mexico's private credit market presents a rare combination of high yield generation amid substantial transaction volume and growing asset manager presence establishing sustainable platform economics in the region.
Apollo Global Management has emerged as a major capital allocator in this space, committing to deploy up to $20 billion in private credit across Mexico. The strategy reflects Apollo's identification of infrastructure financing as a long-term growth vector, capitalizing on structural demand from Mexico's industrial expansion corridor. The firm is actively engaged in infrastructure transactions—including a $300 million private placement of senior secured notes for Mexico Infrastructure Partners financing power assets previously held by Iberdrola—while offering borrowers execution speed and loan maturities superior to commercial and development bank offerings. This positioning aligns with President Claudia Sheinbaum's economic agenda attracting private capital to infrastructure, though project development pace has occasionally lagged expectations.
Mexico's electricity sector faces a fundamental supply-demand imbalance. Industrial surge driven by nearshoring and new manufacturing investments has accelerated power demand in key industrial corridors, while the nation's electricity capacity struggles to maintain adequate reserve margins and contains volatile capacity pricing. The private sector has been called upon to develop renewable supply and grid modernization, though recent policy measures limit private investors to minority equity stakes in electricity generation. This regulatory framework creates a bifurcated financing landscape where private credit and senior secured lending structures offer attractive risk-adjusted returns relative to equity participation constraints.
The broader Mexican private credit market reflects an underbanked economy with severe financing gaps among SMEs and corporates. Traditional banking inefficiencies have created a structural void that alternative credit providers increasingly address. Private credit activity is expected to continue accelerating as nearshoring investments mature and infrastructure modernization requirements intensify across power, renewable energy, and telecommunications sectors. For institutional investors, Mexico's private credit market presents a rare combination of high yield generation amid substantial transaction volume and growing asset manager presence establishing sustainable platform economics in the region.
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