From infra to tech: Helping companies navigate Latin America

From infra to tech: Helping companies navigate Latin America

Recently appointed as executive vice president, Americas, at corporate service provider, fund administrator and advisory firm Vistra, Miami-based Raimundo Diaz is overseeing the company's expansion following its acquisition of Biz Latin Hub, which strengthened its presence in Spanish-speaking Latin America and Brazil.

In this interview with BNamericas, Diaz discusses foreign direct investment trends across the region, the outlook for key markets including Brazil, Colombia and Peru, opportunities linked to nearshoring and startups, and growing interest in artificial intelligence, digital infrastructure and data centers.

BNamericas: Congratulations on your new role. What are your plans and priorities as Executive Vice President for the Americas, and what opportunities do you see for companies in Latin America?

Diaz: This is a business I’ve worked in before, so it’s something I know relatively well. I was previously responsible for the Americas at another company. What’s different this time is that Vistra has recently acquired a presence in Spanish-speaking Latin America and strengthened its footprint in Brazil through the acquisition of Biz Latin Hub.

That gives us strong leverage to provide services to US, European, and Asian customers throughout the region. It’s not that we didn’t offer these services before - we did, through affiliates and third parties - but now we can provide the same consistent quality of service regardless of jurisdiction.

The beauty of it is that we do it through a common platform, Vistra Digital. That’s something quite unique to our company. Biz Latin Hub has given us this regional footprint in one move, something that would have taken years to build organically by opening offices one by one.

Diaz: As you know, creating an entity in Brazil takes time. Now we’re able to provide a consistent approach across the region. Our priorities are to continue growing our client base, improving service quality, and being able to tell clients: “Yes, we can help you wherever you want to go.”

Our customers shouldn’t have to worry about whether we’re present in a particular country. We are. Our people follow the same standards whether they’re in Colombia, Mexico, Chile, or Brazil. We help clients enter those markets while avoiding the typical pitfalls companies encounter when going it alone.

I’m very excited because U.S.-Latin America and Europe-Latin America are among the most important foreign direct investment corridors in the world, and we’re well positioned to support that.

BNamericas: How exactly does Vistra work with clients expanding into Latin America?

Diaz: Think of it as a metro line. We can meet customers at any station along their journey.

A client may come to us at the very beginning and say, “I want to open a subsidiary in Brazil.” We help create the entity, handle the bureaucracy, obtain tax registrations, and complete all the required procedures.

Others may already be operating in the country but need help with payroll, deciding whether to use an employer-of-record model or hire directly. We help there too.

Sometimes the company is already established but needs accounting, bookkeeping, tax reporting, and compliance. We can step in at that stage as well.

We support customers throughout the entire lifecycle of their international expansion—from entity creation to eventual liquidation. Thankfully, we create more entities than we liquidate.

Our services include entity management; accounting and bookkeeping; internal and external reporting; tax compliance; tax advisory, HR advisory. payroll administration; corporate governance support.

At the end of the lifecycle, if a company decides to close operations or liquidate a special-purpose vehicle created for a project, we support that process as well. We’re involved from the beginning to the end.

BNamericas How would you describe the current environment for foreign direct investment (FDI) in Latin America?

Diaz: It depends on the year and the political environment. Investment flows tend to come in waves.

A country like Colombia may become very attractive because it’s investing heavily in infrastructure. Brazil may attract investors due to government policies supporting sectors such as mining, oil and gas, or transportation infrastructure.

There are also structural factors. Brazil, for example, is inherently attractive because of the size of its market. The South and Southeast regions alone represent a market larger than many European countries.

Mexico benefits from its proximity to the United States. The U.S. naturally looks first to Canada and Mexico when expanding internationally.

Long-term trends also matter. During the 2000s and 2010s, companies focused on offshoring to Asia. After the COVID-19 pandemic disrupted supply chains, nearshoring became a major trend. As a result, countries such as Mexico, Honduras, Guatemala, and El Salvador became attractive destinations for manufacturing and supply-chain diversification.

Then there are stable markets such as Chile, Costa Rica, and Uruguay, which continue attracting investment over the long term.

Argentina is an example of a country that can be highly attractive for several years and then much less attractive due to changes in the political and economic environment.

We help clients navigate both the good times and the difficult times.

BNamericas: Brazil, Peru, and Colombia are all facing election cycles. How is the outlook for these markets?

Diaz: Brazil is a continent in itself, especially from an investment perspective.

I think Lula’s first government demonstrated that a left-of-center administration can coexist with strong investment flows. While today’s macroeconomic environment is different, Brazil has shown that it can maintain a relatively stable economic approach regardless of political orientation.

Different governments may favor certain industries over others, but Brazil remains Brazil. It’s the market I’m least concerned about in terms of attracting foreign direct investment.

Peru is a very interesting case. Despite experiencing political upheaval for decades, its economy has remained remarkably stable.

The sol is a stable currency, and investors have learned how to price political risk there. Twenty-five years of consistent economic growth despite political turbulence is quite unique.

I have a special appreciation for Colombia. It’s a country full of entrepreneurs and an attractive destination for foreign investment.

It has a young workforce, strong English-language skills, and has increasingly become a preferred location for service centers, replacing Costa Rica in some cases because of lower costs and a larger talent pool.

What makes Colombia unique is that economic activity is distributed across multiple cities—Bogotá, Medellín, Cali, Pereira, and the Caribbean region. It doesn’t rely on a single economic center.

Political factors certainly matter. During Petro’s administration, foreign direct investment declined. But Colombia has a very strong entrepreneurial base that helps sustain the economy.

We also support many Colombian companies expanding internationally. It will be very interesting to see the outcome of the elections and how relations with the United States evolve afterward.

BNamericas: How are companies currently viewing Venezuela?

Diaz: Many Venezuelan entrepreneurs and investors are ready to return—not necessarily to live there again, but certainly to invest. There’s a wait-and-see attitude right now. Everyone is at the starting line, ready to move once there is greater clarity about the political situation.

The opportunities are enormous: rebuilding industries, nfrastructure development, real estate investment, energy sector recovery.

Flights between the United States and Venezuela are already full.

As soon as there is more certainty regarding the political environment, I believe investment will accelerate. Venezuela has been largely absent from major investment flows for many years, so the potential upside is significant.

Importantly, Venezuela also has a strong talent base. Many Venezuelan professionals who left the country have contributed significantly to industries elsewhere in Latin America. For example, many former PDVSA professionals played important roles in developing Colombia’s energy sector.

Rebuilding Venezuela will take time, but the foundations exist.

BNamericas: What types of companies are Vistra’s main clients?

Diaz: We’re very industry-agnostic. We work with clients ranging from agriculture to cutting-edge technology companies. At the end of the day, we provide services related to entity management, accounting, payroll, tax compliance, and corporate administration.

Our clients are experts in their own businesses—whether they sell software, meat products, or industrial equipment. They rely on us for the administrative and regulatory aspects of international expansion.

Our sweet spot is generally the mid-market segment and startups.

Large corporations often have their own internal accounting, tax, and legal teams. However, we also support many large multinational companies, particularly when they need help managing complex corporate structures across multiple countries.

For example, a multinational may have acquired companies over the years and accumulated numerous entities in Brazil, Japan, and elsewhere. We help them consolidate and simplify those structures.

BNamericas: You mentioned startups. How do you view the startup ecosystem in Latin America today?

Diaz: It’s very dynamic. I was at a recent event in Boston with a law firm and an international bank. Of the ten companies attending, nine were early-stage startups. Their main question was: “How do we go international?”

These companies think globally from day one. Many Latin American startups look first toward the United States because they see it as the largest opportunity for scale. If they succeed there, they can succeed anywhere.

There are also sectors where Latin America is ahead of the curve. Fintech is a great example.

I remember speaking with officials from Brazil’s Central Bank and being amazed by how quickly payments could be processed. In the United States, transfers can still take two business days, while Brazil developed near-instant systems long ago.

Necessity drove innovation. Experiences such as hyperinflation forced the development of more advanced financial technologies.

Today, Latin American fintech innovations are being exported to developed markets.

Many venture capital and private equity firms are becoming increasingly specialized in Latin American startups because they see tremendous potential and creativity coming from the region.

BNamericas: What other areas of innovation stand out in Latin America?

Diaz: Electronic invoicing is another excellent example. Brazil and Argentina were pioneers in creating systems where invoices are transmitted directly to tax authorities in real time. These systems were originally designed to combat tax fraud.

Today, European countries are adopting similar models.

Where do they look for expertise? Often to Latin American companies and startups that developed these technologies first.

There are many technologies flowing from Latin America to Europe and the United States, not just the other way around.

BNamericas: What about artificial intelligence, digital infrastructure, and data centers?

Diaz: We are increasingly working with companies in those sectors. Many technology companies, particularly from the U.S. West Coast, are looking at opportunities in Latin America.

Energy availability is becoming a major competitive advantage. We’re seeing significant interest in places such as Chile, where solar and wind projects are increasingly being developed specifically to support data centers.

There are substantial opportunities tied to renewable energy, AI infrastructure, and data center development throughout the region.

(The original version of this content was written in English)

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