Actis Targets Mexico Energy Infrastructure Amid Eight-Year Investment Gap

Private equity firm Actis is prioritizing Mexico as its most active market in Latin America, citing an eight-year investment gap and rising demand driven by nearshoring and internal consumption. The firm, which has deployed over $4.5 billion in the region's energy sector, is leveraging a "catch-up" narrative as the Mexican government opens paths for private capital through the CFE mixed-scheme projects. This strategic focus highlights a broader trend of private equity players returning to Mexico to fill the void left by international utilities that are currently recycling capital and refocusing on core markets.

Actis, a major player in energy infrastructure with 41GW of global installed capacity, is currently focusing its Latin American investment activity on Mexico to capitalize on a wholesale market expected to double in size. Bernardo Graf, Actis's principal for energy infrastructure, identifies three core strategies for the region: a buy-and-build approach for renewable projects, buyouts of non-core portfolios from European and American utilities, and investments in contracted assets with commercial offtakers. While the firm sees potential for battery hybridization in Chile and new opportunities in Colombia, Mexico remains the primary destination for capital deployment due to its severe under-investment over the past eight years.

The firm’s commitment to Mexico is bolstered by the government’s Plan Mexico, which acknowledges that the state cannot independently fund the necessary additional energy capacity. Actis is specifically targeting the new mixed-scheme projects with the Comisión Federal de Electricidad (CFE), which offer 25-year, USD-indexed power purchase agreements (PPAs). Graf notes that approximately 8GW has already been awarded under these schemes, representing a mobilization of nearly $8 billion in capital. Actis is currently looking to invest in three of these mixed projects, having provided input to the government during the design phase to ensure the structures were bankable for private investors.

The shift in Mexico’s energy landscape is partly driven by the exit of foreign utilities that are repurposing their balance sheets in response to increased interest rates. This exodus has created a vacuum that private equity firms are now rushing to fill, with Graf observing a significant return of PE players to Mexico City. Actis differentiates itself by having maintained its presence through market volatility, whereas many competitors are only now returning. The firm expects energy demand to continue its upward trajectory, fueled by both domestic consumption and the nearshoring trend, making the market a high-conviction destination for large-scale capital deployment and operational optimization.