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Laxman Pai, Opalesque Asia: Certificates of Capital Development (CKDs) are helping investors to access a variety of developing sectors in Mexico - namely infrastructure, real estate, mining, technology, and business, said Preqin.
Introduced by the Mexican Government in 2009, CKDs are private capital vehicles that allow AFOREs (Mexico's public pension funds) and other domestic LPs to invest.
CKDs ultimately enable investors' access to legitimate alternatives fund managers, safely and securely. This is because the government requires high levels of transparency and scrutiny around these vehicles, ruling that CKDs must be listed and regulated either through the BMV (Mexican Stock Exchange) or BIVA Exchange. These public listings help to curtail any corruption, which is a potential drawback of investing in an emerging market.
Private capital industry boosts Mexican economy
Preqin said that while it is still too early to get a handle on the success and overall performance of CKDs, it is clear that the private capital industry continues to boost the Mexican economy.
President Andrés Manuel López Obrador will soon reveal a set of major infrastructure projects backed by the private sector to lift the local economy1, kickstart economic growth and attempt to avoid a possible recession.
According to Preqin, 69% of CKDs tracked by Preqin are focusing on infrastructure or real estate, and so real assets will likely remain a key feature in López Obrador's...................... To view our full article Click here
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