I-Structure - A Journey Through The Mexican Securitization Market
In our new series, Leaders InFocus, I have the privilege of uncovering the
insights, strategies, and personal journeys of pioneering leaders who have
cracked the code to success—a feat many strive for but few achieve. How do
these exceptional individuals identify untapped opportunities, build dedicated
teams, and maintain relentless focus amidst challenges? Each profile in Leaders InFocus reveals unique strategies and practical
insights, offering readers valuable guidance and inspiration for bringing
intelligent solutions to their own markets.
i-Structure has pioneered securitisation in the Mexican
market for over a decade. I examine the journey this has taken the founder
Victor Gonzalez on and discover what has contributed to the business’s
remarkable success in this traditionally underserved area.
Brett:
First, Victor,
congratulations on winning the GFM Review Award
for Best Investment Banking
Deal of the Year, Mexico 2025.
As the founder of i-Structure, could you give us an overview of your
professional journey and how you came to establish the firm?
Victor:
Absolutely. i-Structure is a niche-focused investment banking boutique
I founded a little over 15 years ago. My background has been in banking for
most of my career. After earning my MBA on the East Coast of the U.S., I ultimately
returned to Mexico to continue working in investment banking.
I initially worked at a
global investment bank in New York before continuing my career in Mexico. I
spent years in mergers
and acquisitions (M&A)
but realised there was a better business opportunity in structured debt products. While working at a Mexican financial
institution, I switched from M&A to structured finance.
When I went independent, I wasn’t entirely sure
where the journey would lead, so we pitched everything to everyone we knew. Our
first mandates were for public
securitisations for a
couple of leasing companies in Mexico City. At the time, the Mexican public markets had very few securitisation players. The
product was virtually non-existent, but we saw an opportunity to fill an
underserved area in the Mexican Stock Market
Our initial securitisations
were well received, placed at highly attractive terms for the issuers. This was
around 2011, and back then, there were only three firms doing securitisations
in Mexico (we were the first independent agent). Fast-forward to today, and
we’ve brought over
20 names into the public
markets. Our once non-existent competition has grown—there are now about 10 independent structuring agents and roughly 30 non-bank financial institutions vying for the same funds.
Unfortunately, the Mexican public markets haven’t grown as much as we’d hoped. The pension fund system has expanded significantly, but these funds
typically avoid smaller securitisations, leaving us reliant on insurance companies and high-net-worth
(HNW) investors from local
banks and stockbrokers. That’s been a challenge.
Despite this, we’ve developed
a placement strategy to successfully distribute these products.
Over the past few years, securitisations have become more available, yet the
pool of investors hasn’t expanded at the same pace. That’s why we devised a
formula to bring in the right mix of stockbrokers and HNW investors. As a result, our last four public securitisations were oversubscribed, which is quite
disruptive in a context in which it is often mentioned that books are hard to build.
The market itself has
evolved. More institutions now conduct private securitisations, some rated, some not. This shift has taken
some pressure off public markets. Additionally, moreMexican banks have entered the structured finance space, a development we hadn’t seen five years ago.
It’s an interesting time for non-bank financial institutions and for corporates
in Mexico.
Brett:
You’ve closed 66 deals. That’s a massive number for any company. From
what you’re saying, it sounds like your success comes down to high-net-worth investors, strong broker
relationships, and your placement formula.
Victor:
Yes, absolutely. But it
hasn’t been easy.
For context, when we placed our first securitisation for a leasing company 14 years ago, the spread was 155 basis points over the benchmark rate (what we call TIIE, similar to SOFR in Mexico).
Recently, spreads reached as much as 300 basis
points due to the rising
interest rate environment. With government bonds offering safer returns, many investors opted for those over
securitisations—even if they were rated AAA locally. The challenge has been convincing investors to
participate in longer-tenor structured products.
Thankfully, our placement
strategy has paid off. The highest spread for non-bank financial institutions in Mexico has now dropped from 300 to 250 basis points. Our success has had a stabilising effect on
the market.
It’s also worth noting that Mexico is an anomaly—structured securitisations here often carry
higher spreads than equivalent unsecured
debt. That shouldn’t happen. Secured, structured products with robust stress
testing should logically be priced lower than unsecured corporate bonds.
Brett:
Since founding i-Structure,
you’ve been at the centre of the business. How has that changed as you’ve
grown?
Victor:
Good question. We started in
the garage of my house in Mexico City. Over time, we’ve grown and institutionalised the firm.
My goal is for i-Structure to
outlive Victor Gonzalez. We’re working towards that every day. In a
few years, I expect the firm to be even larger, more institutionalised, and with
a more diversified product base.
Brett:
So you see i-Structure
evolving into a more diversified business?
Victor:
Yes, but still within niche investment banking. We won’t restrict ourselves to financial institutions—there are other sectors where we can add value.
We’re also expanding our product offering. Managing structured funds is our next frontier. We’re currently in talks
with major institutional investors, and we have a few commitments already. If
all goes well, we’ll finalise that by the end of the year. I’ll keep you
posted.
Brett:
That’s exciting. Given
Mexico’s economic growth, do you see increasing demand for your
services?
Victor:
It’s complicated. Mexico
isn’t experiencing the kind of explosive growth that, say, South Korea had in the 1980s. The current government prioritises social
welfare programs over private-sector incentives. This means business growth is self-driven rather than policy-driven.
Despite political
uncertainty—especially with the recent result of U.S. elections and the
resulting global tensions—Mexican businesses are expanding. However, GDP growth
expectations remain modest. Over-leverage is also a concern. The government has
invested heavily in infrastructure projects that may not generate sufficient economic
returns, raising fears of a
credit downgrade.
That said, Mexico didn’t have an investment-grade rating when I started working in investment banking,
and global banks still did business here. A downgrade wouldn’t be ideal, but it
wouldn’t spell disaster.
In addition, Mexico now has a
strong domestic savings
base, something it lacked
20 years ago. Local markets will continue to function, and investment opportunities will persist.
Brett:
That makes sense. These
things are cyclical. Every 10 years or so, economies shift. i-Structure seems
well-positioned to benefit
from both downturns and upturns
thanks to your foresight and leadership.
Victor, thank you so much for
your time and once again congratulations.
Brett
Hurll,
Executive Editor at Global Financial Market Review, draws on over 35 years of
international experience across technology and finance sectors, providing
readers with sharp analysis and unique perspectives on emerging trends, market
shifts, and the complex interplay between global business and political
dynamics. His extensive background and senior leadership role position him as a
trusted voice on financial markets and economic developments.