Looking for signs that the Mexican economy is strong? Just look to the number of Mexican and Latin American investors who are amassing incredible wealth. From Carlos Slim,the latest wealthiest man in the world,to investment firms catering directly to wealthy Latin Americans,the writing is on the wall – Mexico and Latin America are the places to invest.
Carlos Slim was named the world's richest man in April 2010 and his holdings continue to increase as he looks to expand his reach into America. After amassing a fortune of over $60 billion,Slim is extending his retail chain Sanborns into the U.S. According to Bloomberg News,Slim and his associates are looking to introduce the retail store in a new location in New York City. This will mark this first time Sanborns will be crossing the border. The retail store started in 1903 in Mexico and was acquired in 1985 by Slim's Grupo Carso SAB.
This is one of many investments that Slim and Grupo Carso have made in the New York area. He was one of a group of investors who in July paid $44 million for a townhouse on Manhattan's Fifth Avenue. His family investment group Inmobiliaria Carso SA bought an office tower at 417 Fifth Avenue the previous month for $140 million in June. Slim is the biggest shareholder in Saks Inc. and holds stake in the New York Times Co.
Although Slim's investment achievements are impressive,they are not entirely unique for many Mexican and Latin American investors. This sector of investors is growing exponentially as economies of Mexico and many Latin American countries grow as well.
Evidence of the growth can be seen in the Sanders Morris Harris Group's recent purchase announcement. The Sanders Morris Harris group,based in Houston,is planning on purchasing a 50.1 percent share of Global Financial Services. The firm caters to very wealthy investors from Latin America and the purchase will help Sanders Morris Harris cater to this growing clientele.
“This will open up for us a new,very large marketplace: the very wealthy Mexican and Latin American investor,” said Sanders Morris Chief Executive George Ball,“It is a considerable marketplace which is apt to grow.”
Global Financial Services currently manages $4 billion in assets. The company will pay $15 million in cash and $3 million in stock up front. They plan to pay up to an additional $14 million if Global Financial Services meets it's performance targets from now until 2014.