Enterprising Families at the Forefront of Business in Mexico

Panel Overview and Market Context

• The Latin American Private Capital Association (LAFCA) is rebranding to emphasize "private capital" broadly, reflecting a shift from pure private equity/venture capital to include family offices.
• LAFCA President Kate Ambrose noted a significant increase in Mexican and Latin American representation at the Milken Conference over the last two years, driven by Mike Milken's commitment to US-Mexico relations.
• Family offices and family business groups in Mexico are increasingly institutionalizing, serving as co-investors and deal pipeline developers within the regional ecosystem.
• The panel highlighted a demographic shift: 45% of Mexico's population is under 25, with millennials from family groups transitioning into roles as entrepreneurs, angel investors, and VC investors.
• Mexico is a global priority for tech giants like Amazon and Didi Xuxing, supported by 65,000+ annual IT graduates and 115,000 engineers.
• Current US administration rhetoric regarding Mexico is described by panelists as starkly contrasting with the actual competitiveness and global success of Mexican business groups.

Panelist Business Profiles and Strategies

Gina Diaz-Borroso de Azcarraga (Grupo Dyarik & Centro)

• Family legacy originates from Televisa (grandfather founded the network); she founded a high-end real estate firm before pivoting to education at age 40.
• Centro University Launch: Took nine years to plan and open; founded to integrate design thinking, user experience, and business into a single curriculum.
• Curriculum Model: 35% of the curriculum focuses on business and entrepreneurship; students learn financial statements, pitching, and VC acquisition.
• Operational Metrics: Currently serves 3,000 students with 35% on scholarships; has grown 10x in 10 years.
• Pricing Strategy: Tuition is 10% lower than high-end Mexican universities despite paying professors double the market rate.
• Expansion Strategy: Will not open additional campuses in Mexico; the first international location will be Miami (deal closing May 10th).
• Miami Model: Combines non-profit undergraduate studies with for-profit graduate and continuous education; targets global students rather than just the Latin American demographic.
• Campus Standards: The Mexico City campus was the world's first fully LEED Platinum campus upon opening four years ago; the Miami site aims for similar sustainability standards.
• Future Markets: After Miami, expansion targets Madrid and Colombia.

Nicolás Mariscal Serviche (Grupo Marños & Grupo Bimbo)

• Marños (Infrastructure): Five generations of family involvement in construction and infrastructure; shifted from construction to infrastructure developer in 2008.
• Marños Operations: Running a toll road in Guatemala for 20 years; entering the Peruvian market; pioneer in Mexico's public-private partnership hospitals.
• Leadership Structure: The company employs a "two-leader" model (CEO and cousin), deviating from his grandfather's "one leader" philosophy.
• Bimbo Global Scale: Founded in 1945 by immigrants from Catalonia; now the world's largest baking company operating in 32 countries.
• Bimbo Expansion: Early international expansion moved to Guatemala, then Texas, followed by acquisitions of Western and Sara Lee; entered Spain and Canada later.
• Corporate Culture: Maintains a "founder's mentality" akin to a 73-year-old startup; focuses on developing leaders through front-line experience (e.g., sales, factory work).
• Integration Strategy: Acquired companies retain local talent but adopt Bimbo's core values; exchanges occur between geographies for innovation.
• Compliance & Safety: Strict adherence to food safety and hygiene (e.g., mandatory uniforms/shoes) even in markets like India where cultural norms differ.

Alonso Diaz-Etienne (Hebera Capital)

• Family Origin: Grandfather arrived from Spain in the late 1920s as a single mother's son; built a massive sewing machine and hotel business empire.
• Hotel Business: Largest Merit franchise and owner in Latin America; expanded from Mexico into Spain and other markets.
• Hebera Capital Evolution: Transitioned from a traditional family office to an institutionalized platform raising third-party capital to validate strategy and governance.
• Investment Pipeline: Reviews approximately 180 projects annually, selecting 2–3 for investment.
• Cross-Border Investments:
  • Invested in a Dallas-based SaaS company serving the airline industry (software factory in Argentina, clients in Mexican resorts).
  • Invested in an avocado farm in Mexico to supply Driscoll's (60% global market share); mitigates US immigration risks by producing in Mexico.
• Institutional Growth: Over 70 Cedes (Mexican private equity funds) have been issued by pension funds (Afores) in recent years, representing nearly $18 billion in assets.
• Market Transformation: Private pension funds (Afores) now actively investing in infrastructure and energy; Mexico has seen more Cedes issues than IPOs recently.
• Grandfather's Advice: The "secret" to success is entering the "business of integrity," which he described as the least competitive market.

Governance, Rule of Law, and Social Initiatives

Corruption and Impunity

• Impunidad Cero: A private sector initiative launched by Gina Diaz-Borroso involving six business leaders and nine intellectuals to fight impunity through data-driven research rather than complaints.
• Funding Model: Business leaders fund the initiative while intellectuals vote equally on initiatives to avoid financial influence over policy outcomes.
• Infrastructure Ethics: Grupo Marños refuses to engage in infrastructure projects in Guatemala and Peru if conditions do not ensure a level playing field, citing past corruption scandals (e.g., Odebrecht).
• Collective Action: Developers in Mexico are collaborating with the Association of Developers to enforce transparency and refuse corrupt permitting processes.

Mexico's Posibles

• Mission: An organization addressing inequality, illegality, and insecurity ("the three I's") by engaging diverse societal groups, including former gang members and indigenous leaders.
• Methodology: Developed three national scenarios (growth, status quo, regression) to present to voters and political candidates.
• Goal: Facilitate cross-sector dialogue to tackle systemic issues that government alone has failed to resolve effectively.

Election Outlook and Forward-Looking Statements

• 2018 Election Context: Panelists discussed the upcoming July 1st presidential election and the prominence of candidate Andres Manuel Lopez Obrador (AMLO).
• Market Uncertainty: Investors are advised to reduce leverage and risk exposure while preparing to acquire assets at favorable prices during the uncertainty.
• AMLO Assessment:
  • Panelists noted AMLO previously governed Mexico City responsibly and honored contracts.
  • Business support for AMLO is stronger than perceived, with many entrepreneurs aligning with his platform.
  • Strong checks and balances exist due to the lack of re-election and independent Congress/Senate elections.
• Risk Factors: The primary fear cited is not AMLO personally, but potential policy shifts regarding the economy if the balance of power in Congress favors radical changes.
• Energy Sector: Mexico's energy reform has been successful and transparent; expected to attract over $200 billion in investment in the coming years.
• Future Energy: A global shift from hydrocarbons to renewable energy is anticipated; Mexico is well-positioned due to its hydrocarbon reserves and potential for solar/wind energy.
• Pension Fund Participation: Mexican pension funds (Afores) and international investors (e.g., BlackRock, Riverstone, Canadian pension plans) are actively increasing capital allocation to Mexican energy and infrastructure.
• Generational Shift: A new generation of Mexican entrepreneurs, educated in the US, is driving a shift toward transparency, corporate governance, and open capital markets.