Amid a global environment marked by macroeconomic volatility, trade tensions and tighter financial conditions, Latin America remained attractive to investors and closed 2025 with double-digit growth in mergers and acquisitions (M&A) activity.
According to “Unlocking Potential: Latam M&A and PE Activity in FY 2025,” a report published by Marsh, the global leader in risk, reinsurance, capital, people, investments and management consulting, the total value of transactions involving Latin American assets reached $114.3 billion, representing a 16% increase compared with 2024. The number of transactions, however, declined slightly to 1,345 deals, reflecting a global trend toward larger and more complex transactions.
Brazil remained the region’s leading market, recording 850 transactions with an aggregate value of $55.1 billion. Mexico and Colombia completed the group of most active countries, supported by strategic infrastructure and energy deals that continue to attract international capital.
The primary driver of growth was the energy, mining and utilities sector, which generated $42.6 billion in transaction value, representing a 25% year-over-year increase. Rising energy demand linked to the expansion of artificial intelligence, data centers and the transition to cleaner energy sources fueled investor interest in renewable energy assets, power transmission and electrical grid infrastructure.
The largest transaction of the year was GE Vernova’s acquisition of the remaining 50% stake in Prolec in Mexico for $5.3 billion, underscoring the growing strategic importance of energy infrastructure across the region.
Private equity also experienced one of its strongest rebounds of the year. Private equity transactions totaled $19.8 billion, representing a 106% increase from 2024, although the number of deals declined to 189 transactions.
Activity was driven primarily by investments in infrastructure and renewable energy, including Actis and GIC’s acquisition of a controlling stake in Serena Energia for $2.8 billion, as well as the acquisition of Orygen in Peru.
The technology, media and telecommunications (TMT) sector also remained highly active. With 278 transactions, TMT was the most active segment by deal count, supported by consolidation among telecommunications operators and the need to accelerate investment in fiber-optic networks and 5G technologies.
Among the most notable transactions was Millicom’s acquisition of Telefónica’s Colombian subsidiary, highlighting the sector’s ongoing consolidation as operators seek greater scale to meet growing demand for digital services.
At the same time, the nearshoring trend continues to strengthen demand for logistics infrastructure and data centers, creating new opportunities across both the real estate and infrastructure sectors.
Despite this momentum, the market faces significant challenges. Inflationary pressures, shifting tariff policies and a more restrictive financing environment have widened valuation gaps between buyers and sellers, increasing the complexity of negotiations.
In response, investors and financial sponsors are increasingly turning to transactional risk transfer solutions such as Representations & Warranties (R&W) insurance to reduce uncertainty and facilitate deal completion.
Felipe Escallón, Head of Private Equity and M&A for Florida and Latin America at Marsh, noted that the region has remained resilient despite macroeconomic volatility and geopolitical and regulatory challenges.
“Investors and sponsors are increasingly relying on transactional risk solutions to reduce uncertainty, bridge valuation gaps and facilitate faster and more secure execution of cross-border transactions,” he said.
Looking ahead to 2026, expectations point to a continuation of the trends observed last year, with investment increasingly concentrated in renewable energy, power grids, infrastructure and telecommunications, alongside growing participation from private equity funds.
However, industry experts agree that access to capital alone will no longer be sufficient. The ability to structure transactions effectively and manage associated risks will be a critical factor in turning investment opportunities into successful deals.