Latin Finance - September/October 2014 - 54

started to employ some innovative funding
techniques, including this year working
developing the country's first locally-syndicated peso loan. "We are by far the largest
issuer of Cebures [local corporate bonds],"
says treasurer Rodolfo Campos. "But still,
the capacity to absorb all our needs is not
there yet, and that is why we try to diversify
the sources of funding, and banks are an
important part of that."
Private interest
Already private-sector firms, including the
large Mexican conglomerates, are starting
to raise capital for the energy market op-

portunities to come. "It's a reality already,"
says Jaime Martínez Negrete, head of Morgan Stanley's business in Mexico, speaking
of firms' funding plans as a result of the
reforms.
Monterrey-based conglomerate Alfa,
for example, issued a debut cross-border
bond in March, raising $1 billion in 10 and
30-year tranches. In the past, its subsidiaries in sectors like food and auto-parts have
issued bonds. As well as general corporate
purposes and refinancing debt, the firm
said the debut group-level issuance would
be aimed at the energy sector.
Alfa also raised its stake in Colombian

GABRIEL MILLÁN, SERFICOR

"PRIVATE COMPANIES
WILL REQUIRE A HUGE
AMOUNT OF EQUITY
AND DEBT TO SEIZE
THE OPPORTUNITY.
MEXICO'S CAPITAL
MARKETS ARE READY
FOR THIS"

Hiring trends

In demand
Mexican financial services professionals are enjoying a rise in demand for their talents, thanks to expectations for capital raising,
as growth rebounds and structural reforms take off. The supply
of professionals with experience in Mexico's energy sector is
particularly tight, due to Pemex's previous monopoly.
There is a sharp contrast in hiring trends between Mexico and
Brazil, in a 2014 survey taken by New York headhunter Options
Group. It polled front office staff at vice president level, or with
more than five years' experience, at international and local
banks, broker-dealers, investment boutiques and other buy-side
firms, in Mexico and Brazil.
More than half those surveyed in Mexico said headcount rose
in their group over the last six months, compared to about 30%
of those surveyed in Brazil. Nearly half of Brazilian respondents
said they had seen no change in employee numbers, compared
to only 20% in Mexico. Brazilian respondents were also marginally more likely to report a decrease in the headcount of 5% or
more.
Bankers are typically wary on predicting shifts to come, and
the biggest section of respondents across the region told Options
Group they foresaw no change in their group over the next year.
However, the number of Mexican respondents who said there
would be no change in headcount was 15% less than in Brazil.
The number of Mexican respondents who said there would be
an increase was 20% higher than the number of Brazilian respondents who said there would be an increase.
Alberto Mulás, head of Itaú BBA's Mexico office, says he is
looking for candidates with experience in the energy industry
for three investment banking roles. He notes, however, that such
experience is "hard to find". Itaú BBA opened in Mexico in January, a couple of months after BTG Pactual, and has already hired
Francisco Salas from Citi to head its Mexico investment banking.
Given the shortage of candidates with experience in privatesector energy companies, government and corporate funding
officials are among those being targeted. Mauricio Alazraki,

54 L ATINFINA NCE.COM - September/October 2014

a former Pemex treasury manager, joined Santander México
earlier this year to cover energy clients, moving from the government's social security institute (IMSS) where he was chief
financial officer.
Private equity firms are looking for people to staff Mexico
offices too, and again, particularly in energy. General Atlantic is
among the private equity players planning to open in Mexico.
Evercore, meanwhile, said in June it was hiring Randy Crath,
based in Houston, from the oil and gas division of Scotiabank, to
"help build momentum" in Mexico, Brazil and Europe.
International law firms are beefing up in the country. Haynes
and Boone said earlier this year it was in "aggressive pursuit"
of Mexican lawyers, hiring Carlos Canales from Shell México in
May. Holland & Knight hired five capital markets lawyers from
DLA Piper for its newly created Mexico office in February, while
Hogan Lovells said in July it was joining forces with local firm
BSTL.
"Some firms are trying to grow quite aggressively in Mexico,"
says Vicente Corta a Mexico-based partner at White & Case. LF

Anticipating business
Bankers' expected changes in headcount in the next year

Mexico
24%

21%

Brazil

18%

41%

48%

13%

14%

12%
4%

Increase by
5% or more

Increase by
less than 5%

No change

Source: OptionsGroup 2014 Candidate Survey

Decrease by
less than 5%

6%
Decrease by
5% or more

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Latin Finance - September/October 2014

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