The New Money In Latin America: How Private Lenders Are Filling The Bank Gap
A decade ago, private lenders were a footnote in Latin America. By December 2024, assets dedicated to private credit reached $14.9 billion—more than triple 2015—and the strategy now supplies nearly one-fifth of corporate financing in the region.
Brazil holds about 70% of this market, with Mexico at 14% and Colombia at 10%. Foreign managers (not counting broad “global” funds) account for 27% of the capital, while local pools have surged from $3.7 billion in 2018 to $10.9 billion in 2024. Dedicated foreign vehicles rose from $1.2 billion to $4.0 billion.
The story behind the story is a structural mismatch. Banks still provide roughly two-thirds of all credit in Latin America, and they earn far higher margins than the global average (about 5.4% vs 1.9% at end-2024).
Capital markets are thinner than in the United States, where markets provide nearly 70% of credit. That leaves mid-sized companies and long-dated infrastructure projects hunting for flexible, negotiated financing—precisely where private lenders excel.
Where is the money going? Into asset-backed deals and infrastructure, from energy transition to digital networks.
Brazil’s structured-credit funds (FIDCs) have become a powerful channel, with outstanding investments around R$696 billion ($131 billion) by mid-2025, funneling long-term money to lenders, supply-chain platforms, and fintechs.
Latin America’s Private Credit Push Gains Global Relevance
Why should readers outside the region care? First, this is a new supply of yield with tangible assets and real-economy projects beneath it.
Second, nearshoring and “relocalization” are reviving domestic build-outs—ports, power, data centers—that need financing now, while public budgets are constrained by debt loads, strong U.S. rates, and currency pressures. Private capital is stepping in where the state cannot.
The catch: scale and discipline. Latin America is still only about 0.6% of global private-credit assets, and growth must ride on strong underwriting, credible recovery frameworks, and clear rules for securitization.
Watch Brazil’s FIDC regime, insolvency enforcement, and policy stability in Mexico and Colombia. If those pillars hold, the region’s quiet credit revolution can keep compounding—bigger, steadier, and increasingly relevant beyond its borders.
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This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief