Apollo Global Management is reportedly targeting the deployment of up to $20bn in private credit for projects in Mexico, significantly expanding its footprint in Latin America's infrastructure sector. This ambitious plan aims to originate investment-grade private credit, focusing on loans and structured financing rather than direct equity.

Apollo aims to compete by offering faster execution, bespoke structures, and longer repayment periods than traditional lenders. The demand is driven by nearshoring trends, as companies relocate manufacturing closer to the US, requiring more infrastructure for power, transport, and logistics. Mexico is also encouraging private sector involvement in infrastructure development.

The firm is considering opportunities across the credit spectrum, from growth capital for smaller businesses to long-term financing for investment-grade corporates and infrastructure operators. Apollo has prior experience in Mexico, having provided about $1bn to Grupo Aeroméxico and arranging a $300m note offering for Mexico Infrastructure Partners. This potential $20bn deployment would represent a substantial reshaping of the Mexican private credit market, contingent on suitable projects meeting Apollo's underwriting standards and return requirements.