Search funds for Mexico

                   At Sapiens Capital, we believe that Mexico is one of the best markets for establishing a Search Fund, given our confidence in the country's enormous growth potential. Mexico boasts the second-largest economy in Latin America and ranks twelfth globally in terms of GDP (PPP), with authorities maintaining a prudent fiscal stance and relatively low levels of debt over the past decades. Furthermore, Mexico holds 12 free trade agreements with 46 countries, more than any other nation, and its optimal geographical location provides access to 61% of global GDP and over 50% of global trade. 

Mexico's still-growing population is projected to reach its lowest dependency ratio in the next 10-20 years. Coupled with increased life expectancy, this demographic bonus is expected to translate into higher consumption, investment, and growth. The working-age population is set to increase from 49% to 55% by 2050.

The presence of 24 already-acquired Search Funds in Mexico underscores the effectiveness of this model. Compared to Europe and the United States, the Mexican market is more fragmented, with lighter regulations and greater informality. This scenario complicates the acquisition of reliable business data, making the individual target search of each Search Fund an opportunity to discover valuable assets with less competition among seekers.

Additionally, 87% of family businesses in Mexico lack a clear succession plan, and only 27% have an active Board of Directors. This underscores the evident need for operators who can institutionalize these businesses and offer succession alternatives, making Search Funds a strategic instrument to address this unmet demand in the Mexican market.

At Sapiens Capital, we aim to discuss your legacy and that of your company. We are a Search Fund actively seeking opportunities to collaborate and grow together. Contact us today!

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