Disclaimer
Cross-Border Investment Disclosure & Risk Disclaimer
Investing in private credit within emerging markets like Mexico offers attractive yields but carries specific risks that a US-based investor must understand:
- Jurisdictional Risk: The underlying loans and collateral are located in Mexico. While Consorcio Ergonauta utilizes robust legal structures (fiduciary trusts and notarized contracts), legal proceedings in Mexico differ from US federal courts.
- Currency Fluctuation (USD/MXN): Even if an investment is denominated in USD, the underlying economic activity of the borrowers is in Mexican Pesos. Significant devaluation of the MXN could impact the borrower’s ability to repay USD-denominated debt.
- Illiquidity: Private lending is a “buy and hold” asset class. There is no secondary market for these notes. Investors should be prepared to hold the investment until the agreed maturity date.
- Sovereign & Macroeconomic Risk: Changes in Mexican tax laws, trade agreements (USMCA), or political stability can affect the performance of private credit portfolios.
- No FDIC or SIPC Insurance: These investments are not bank deposits and are not insured by any governmental agency in the USA or Mexico. Capital is at risk.
Why trust Consorcio Ergonauta? We mitigate these risks through:
- Over-collateralization: Many of our loans are backed by assets exceeding the loan value.
- Institutional-Grade Due Diligence: We apply US-standard underwriting to Mexican borrowers.
- Transparency: Regular reporting and clear legal pathways for capital repatriation.
