“Latin America’s Private Markets—Particularly in Private Equity, Venture Capital, and Infrastructure—Are Entering a New Phase of Maturity. According to a report by J.P. Morgan Private Bank, Latin America is no longer seen merely as a source of isolated opportunities but as a structurally relevant market. Although capital flows have decreased compared to the peaks of 2021, the resilience of funds and institutional consolidation are strengthening the foundation of the investment ecosystem.
The pandemic was a transformative catalyst. During those years, thousands of Latin American tech companies—especially fintechs and e-commerce startups—attracted record investments. While many of those valuations were later adjusted, the structural impact was profound:
The digitalization of consumers and businesses accelerated.
Regional venture capital became more professional, with the creation of specialized funds and co-investments with family offices and local banks.
Previously marginal sectors became consolidated, such as digital logistics, healthtech, and edtech.
Now, the market is entering a more disciplined stage, with greater emphasis on profitability and sustainable growth rather than merely exponential growth.
Brazil and Mexico: Poles of Capital Attraction
The report by JP Morgan identifies Brazil and Mexico as the gravitational centers of the private markets boom.
Brazil, with its large size and financial maturity, concentrates the majority of the region’s private equity funds. Regulatory reforms and a more developed capital ecosystem have enabled the emergence of unicorns and robust local funds.
Mexico, meanwhile, has benefited from the global reconfiguration of supply chains (nearshoring), becoming a strategic destination for companies looking to set up operations close to the United States. This has driven demand for investments in infrastructure, advanced manufacturing, clean energy, and industrial real estate.
In both countries, foreign investor confidence has improved, supported by more prudent macroeconomic policies and the strengthening of local financial institutions.
One of the most notable trends is the growth of domestic capital. Latin American pension funds, insurers, and family offices are playing an increasingly important role in financing private projects. As a result, dependence on international capital has diminished.
Most Dynamic Sectors and Future Promises
According to JP Morgan, the most dynamic sectors for Latin America are technology and digitalization, health and biotechnology, and consumption by emerging middle classes, among others.
Two opportunities deserve separate mention: Latin America holds competitive advantages in renewable energy. Brazil, Chile, and Mexico lead projects in solar, wind, and biofuels, while international funds seek to align profitability with a positive environmental impact. On the other hand, nearshoring is generating demand for investment in ports, highways, logistics centers, and industrial parks. Public-private partnerships (PPPs) are once again positioned as attractive vehicles.
