Morgan Stanley Increases Investments in Latin America

News Americas, New York, NY, June 20, 2024: Morgan Stanley is increasing its investments in Latin America as global geopolitical tensions highlight the region’s growing significance in the world economy.

John Moore, managing director and head of Latin America at Morgan Stanley, center, speaks during the Future Investment Initiative (FII) Institute Priority conference in Rio de Janeiro, Brazil, on Wednesday, June 12, 2024. The FII, which is backed by Saudi Arabia’s nearly $1 trillion sovereign Public Investment Fund, will host its first Latin America-focused investment conference. Photographer: Dado Galdieri/Bloomberg via Getty Images

John Moore, head of the Latin America region for Morgan Stanley, emphasized the importance of Latin America for reorganizing supply chains and accessing essential resources such as food, industrial metals, transition fuels, and pharmaceutical ingredients. Moore noted that the bank has been steadily increasing investments in Brazil, Mexico, and other Latin American countries, a trend expected to continue.

Morgan Stanley operates in Argentina, Chile, and Colombia, seeking opportunities in merger-and-acquisition advice, capital markets underwriting, sales and trading, and private credit. The firm, which manages assets worth about $120 billion for wealthy individuals from the region, expanded its business by approximately 6% last year.

Despite the region’s volatility, Moore highlighted the opportunities in Mexico, supported by increased foreign direct investment and remittances. The bank was involved in the $677.4 million IPO of BBB Foods Inc. in Mexico and participated in a funding round for the Mexico payments startup Clip.

In Brazil, investment interest remains strong despite fiscal concerns, with opportunities in fintech, e-commerce, and renewables. Moore also pointed out potential growth in Argentina, Peru, Colombia, and Chile, with Morgan Stanley aiming to continue serving clients across these markets.

The bank’s structured credit solutions help clients manage funding costs amid elevated volatility and high interest rates. Additionally, Morgan Stanley’s wealth-management business for Latin Americans, based in New York and Miami, continues to expand, having doubled its revenue in the past seven years.