Apollo Pledges $20 Billion in Private Credit to Fuel Mexico’s Nearshoring Boom
Mexico · Private Credit
Key Facts
—Scale of the Commitment Apollo’s US$20 billion pledge directly targets financing for large infrastructure projects, offering faster execution than traditional Mexican development banks.
—Nearshoring Fuel The credit influx aligns with a historic wave of foreign direct investment, which reached a record US$41 billion in Mexico by the third quarter of 2025.
—Investment-Grade Focus Apollo positions this deployment within a broader US$40 trillion investment-grade private credit universe, focusing on energy and digital infrastructure.
—Government Incentives President Claudia Sheinbaum’s ‘Plan México’ includes 30 billion pesos (about US$1.4 billion) in nearshoring incentives, creating a pipeline of bankable projects for private lenders.
—Regional Impact The financing is expected to deepen industrial capital concentration in northern and central states like Nuevo León and the Bajío region, which capture nearly 90% of nearshoring FDI.
Apollo Global Management plans to deploy up to US$20 billion in private credit in Mexico, aiming to capture a leading role in financing the country’s multi-year infrastructure expansion driven by the nearshoring trend.
The $20 Billion Credit Mechanism
Apollo Global Management announced its intention to put as much as US$20 billion to work financing projects in Mexico through its private credit division. The strategy focuses on infrastructure projects and other corporate debt deals rather than direct equity investments.
According to the firm, this capital offers distinct advantages over commercial or development bank loans. Apollo can provide quicker closings and longer terms, making it a competitive alternative for the growing number of manufacturers and energy developers expanding in the country.
A Wave of Nearshoring Capital
The pledge comes as foreign direct investment in Mexico hits historic highs. Mexico registered a record of nearly US$41 billion in FDI by the third quarter of 2025, a 15% increase year-on-year, with manufacturing capturing 37% of those flows. Between 2023 and 2025, nearshoring-linked investment announcements reached US$114.7 billion.
Analysts expect a second wave of nearshoring investment in the second half of 2026, contingent on the USMCA review. New projects are heavily concentrated in automotive, electronics, and aerospace sectors across states like Nuevo León, Coahuila, and Chihuahua, which are natural candidates for Apollo’s large-scale credit.
Apollo’s Track Record in Mexico
Apollo has been active in Mexico prior to this broad US$20 billion pledge. The firm arranged a US$300 million private placement of senior secured notes for a trust managed by Mexico Infrastructure Partners, backed by power plants acquired from Iberdrola, with the notes maturing in 2039.
Apollo also previously helped lead a US$1 billion restructuring of Grupo Aeroméxico after its 2020 bankruptcy filing, retaining an ownership stake through its initial public offering. In 2022, the firm provided backing for Banca Mifel’s unsuccessful bid to acquire Citigroup’s Banamex consumer banking unit.
Government Policy and Incentives
President Claudia Sheinbaum is actively courting private capital to close Mexico’s infrastructure gap, particularly in power generation and grid upgrades. Her administration introduced ‘Plan México’ via executive order, allocating 30 billion pesos (about US$1.4 billion) in incentives until September 30, 2030, for firms investing in new fixed assets and worker training.
The government has also extended a decree for immediate tax deductions on new fixed assets until the end of 2030. State-backed lenders including NAFIN, BANCOMEXT, and Banobras are providing complementary guarantees and credit instruments, creating a policy framework that de-risks the projects Apollo targets.
Why This Matters for Investors
For expat and foreign investors, Apollo’s entry signals a maturing of Mexico’s non-bank debt market. Increased private credit availability can accelerate project completion timelines and offer indirect exposure to the nearshoring mega-trend through structured debt instruments.
The move validates the long-term demand thesis for Mexican industrial and energy assets. With Morgan Stanley estimating that nearshoring could push manufacturing exports to the U.S. from US$455 billion to US$609 billion within five years, Apollo’s focus on infrastructure credit is a bet on the backbone services that make that export growth physically possible.
Frequently Asked Questions
What type of projects will the Apollo US$20 billion pledge fund?
The pledge is specifically directed toward private credit investments for infrastructure projects and other debt deals in Mexico. This includes sectors like digital infrastructure, power generation, and energy transition, which align with Apollo’s global thesis on long-dated infrastructure financing.
How does this relate to the nearshoring trend?
Nearshoring has driven record FDI into Mexico, with US$114.7 billion in announced investments from 2023 to 2025. Apollo’s credit is meant to finance the large-scale infrastructure, such as energy grids and industrial parks, needed to sustain this manufacturing relocation from Asia closer to the U.S. market.
Who is competing with Apollo in this market?
Apollo is competing directly with traditional Wall Street lenders and development banks for large-scale Mexican deals. The firm is offering more flexible terms, including quicker closing timelines and longer maturities than commercial or government banks like Banobras or NAFIN typically provide.
Sources: Apollo Chases Mexico’s Infrastructure Boom With $20 Billion Credit Play, Apollo Bets on Mexico With $20 Billion Target for Private Credit, Mexico Sets New FDI Record in 3Q 2025 Driven by Fresh Nearshoring Investment, Mexico Creates Nearshoring Incentives Push, Nearshoring in Mexico: Diverse Options for Industrial Upgrading, Apollo Considers Deploying $20 Billion for Mexico Deals
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