State Street to Acquire Santander CACEIS Latam Ops, Enter Mexico

State Street’s agreement to acquire Santander CACEIS Latam Securities Services grants the US financial institution direct access to Mexico’s institutional investment market, where Santander CACEIS manages $470 billion in assets under custody. Driven by national pension reforms that pushed Afore assets under management to MX$8.3 trillion (US$488 billion) at the close of 2025, the transaction enables global custodians to capture expanding liquidity from rising mandatory employer contributions. The acquisition impacts commercial banks, pension fund administrators, institutional investors, and regulatory bodies overseeing Latin America's primary capital markets.

——

US-based financial services provider State Street has signed an initial agreement to acquire joint venture Santander CACEIS Latam Securities Services across Brazil, Mexico, and Colombia, expanding its institutional custody and asset administration footprint in Latin America. The transaction targets Santander CACEIS's regional operations, which hold approximately US$470 billion in assets under custody and US$225 billion in assets under administration across the three Latin American markets. 

"Latin America has been defined by State Street as a strategic region for our growth for quite some time. We have been looking for the right opportunity to enter the local market with a presence of significant scale," said Joerg Ambrosius, President of Investment Services, State Street. "When the opportunity arose with Santander and CACEIS, we considered it an excellent occasion to establish a major local operation in Brazil, Colombia, and Mexico." 

Subject to regulatory approvals and closing conditions, the deal is expected to conclude in 2027. Once complete, State Street will gain direct access to the Mexican institutional investment market through a consolidated operating platform complete with local licenses, infrastructure, personnel, and regulatory authorizations.

State Street Bullish on Mexican Market, Pension Reform

Addressing the Mexican market specifically, Ambrosius highlighted the country's strong competitive positioning and sustained operational growth in securities services. "We have observed very significant growth rates in the securities services business in Mexico in recent years, and we expect that trend to continue," Ambrosius noted. “We see a very important growth opportunity in the country." 

The State Street executive noted that this growth has been driven primarily by national pension system reforms and heightened international investor interest. "There are several factors driving this growth. One of them is the recent reform to the pension system in Mexico, which will significantly increase the volume of assets under management in the market,” Ambrosius explained. 

The 2020 pension reform established mandatory annual increases in employer contributions toward worker retirement accounts managed by Retirement Fund Administrators (Afores). As a result of the reform, mandatory employer contributions rose from 8.5% of salary in 2024 to 9.5% in 2025, and reached 10.5% in 2026, according to analysis by the Organization for Economic Cooperation and Development (OECD). The reform also outlined a legislative roadmap targeting a figure of 15% by the early 2030s.

This contribution schedule has driven capital accumulation across Mexico's Retirement Savings System (SAR). Year-end data from the National Commission for the Retirement Savings System (Consar) shows that total assets under management held by Afores hit MX$8.3 trillion (US$488 billion) at the close of 2025, representing 23.8% of national GDP, up from 20.3% at the end of 2024.

In 2025 alone, SAR assets expanded by MX$1.5 trillion (US$86.03 billion), marking a 22% annual increase, while annual investment gains (plusvalías) surpassed MX$1.14 trillion (US$65.39 billion) for the first time in the system's 28-year history. Consar reports indicate that the system has accumulated MX$3.34 trillion (US$191.45 billion) in investment gains since 2018, with MX$57 (US$3.27) of every MX$100 (US$5.74) held in individual worker accounts derived from investment returns. Parallel to worker account growth, net profits for the 10 Afores operating in Mexico reached MX$14.35 billion (US$822.94 million) in 2025, a 30% year-over-year increase, while revenue from asset management fees rose 15% to MX$40.11 billion (US$2.3 billion).

International Investment Growth

Beyond domestic pension fund accumulation, foreign capital flows and supply chain realignments are fueling heightened demand for institutional custody and asset administration infrastructure in Mexico. "Another factor driving growth in the security services sector is the rising interest of international investors to invest in Mexico." Ambrosius explained. This influx of global capital into domestic equities, corporate debt, and structured investment vehicles requires local asset servicing frameworks that comply with both domestic financial regulations and international risk management standards.

Official data from Mexico's Ministry of Economy (SE) shows that Mexico attracted US$23.591 billion in foreign direct investment (FDI) during 1Q26 — a 10.4% year-over-year increase that marks the highest figure ever recorded for a first-quarter period. Financial services and banking emerged as primary recipient sectors alongside electric mobility, pharmaceuticals, and logistics, driven by multinational corporations reallocating supply chains to North America under nearshoring strategies.

Parallel to direct corporate investment, public capital market vehicles are expanding rapidly to absorb nearshoring demand. The Mexican Association of Real Estate Investment Trusts (AMEFIBRA) reported that institutional assets under management across the FIBRA sector surpassed MX$1 trillion (US$57.36 billion) at the end of 1Q26, coinciding with a total market capitalization of MX$575 billion (US$32.98 billion) and accounting for nearly 4% of national gross domestic product.