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Laxman Pai, Opalesque Asia:

Mexico boasts a fast-growing private capital sector, strong economic fundamentals, and supportive political institutions, not to mention a burgeoning middle class and a young demographic bulge.

Investors and fund managers are increasingly putting this promising emerging economy - the world's 15th largest with $1.28tn in GDP - onto their radar, said a report by Preqin.

According to AMEXCAP (Mexico's Association for Private Capital), cumulative capital commitments by Mexican funds rose by 11.4% from 2017 to 2018.

And venture capital - especially technology - is booming: more than 120 active venture capital managers in Mexico have invested over $1.8bn in start-ups and companies over the past five years.

The Latin American Private Equity and Venture Capital Association (LAVCA) reveals that 2016 was a standout year for Mexican venture capital, recording the highest number of venture capital deals in Latin America across all investment stages, surpassing Brazil with 63 deals.

Brazil was the largest recipient of funding in 2017, with Mexico coming second. Funding rounds are increasing in size and the exit opportunities are generating attractive returns for investors.

The risk factors in Mexico alternatives story

The Mexico story is not without risk, though. Mexico depends heavily on US trade and, since 2015, investors have been cautiously watching North American Free Trade Agreement (NAFTA)'s renegotiation, U......................

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