Private Capital Seeks Bigger SME Role as Public Investment Falls

AMEXCAP says private capital is ready to scale financing for SMEs from MX$5 billion to MX$50 billion under Plan México, as the country looks to close major credit gaps among smaller firms. The push comes as public investment fell 28.4% in 2025, increasing pressure on private and mixed capital to help fund growth, strengthen supply chains, and support the government’s broader industrial strategy.

Mexico’s private capital industry is seeking to multiply financing for SMEs, with the goal of increasing development-backed support from MX$5 billion (US$278.99 million) to MX$50 billion (US$2.79 billion) under Plan México, says Pablo Coballasi, President, Mexican Private Equity Association (AMEXCAP). 

Speaking at the Private Capital Summit, Coballasi says the industry already invests about US$7.5 billion a year in Mexico and has deployed more than US$89 billion over the past two decades. He says that over 40% of that US$89 billion has been invested over the last five years, implying annual compounded growth of more than 17%, well above the pace of the broader economy. He adds that private investment funds increased their investment by 47% in 2025 versus 2024, while capital funds rose 27%, arguing that the sector is stepping in to solve structural gaps in financing and development.

The push comes as Mexico faces major financing gaps among smaller firms. Coballasi notes that nine out of 10 SMEs and microenterprises still lack access to credit, while large development needs persist in areas such as connectivity, education, and health. In that context, a tenfold increase in capital aimed at SMEs could help channel more funding into productive projects linked to new industries and supply chains under Plan México. That last point is an inference based on the financing targets and the government’s industrial policy agenda.

When President Claudia Sheinbaum unveiled Plan México, the government said one of its priorities was to expand access to financing for SMEs through innovative banking collaborations, alongside goals to raise investment above 25% of GDP by 2026, increase domestic sourcing in strategic sectors, and deepen Mexico’s participation in global value chains, reports MBN.

Under Plan México, smaller companies are expected to play a larger role as suppliers, manufacturers, and service providers within strategic industries, while public procurement is also meant to favor national production. In that context, a tenfold increase in capital aimed at SMEs could help more firms scale up, integrate into industrial supply chains and participate in the country’s broader industrial policy push.

The case for greater private capital participation has become more urgent as public investment weakened sharply in 2025. MBN reports that public investment fell 28.4% in real terms last year, with some of the steepest declines seen in communications, transportation, and economic infrastructure. 

That contraction adds weight to the argument that private funds, development banks, and new investment vehicles will need to play a larger role in financing the country’s growth agenda. During the same event, Ángel Cabrera, President, CNBV, says private capital will be key to advancing the administration’s infrastructure goals, including a pipeline of more than MX$5 trillion in strategic projects tied to energy sovereignty, logistics connectivity, and sustainable development. He adds that instruments such as FIBRAs and other investment structures could help attract capital while the state retains control of strategic assets.