Blackstone Group has raised $695 million from Mexican pension funds for its first two local private equity funds, filings showed, joining Black Rock and KKR & Co in expanding in Mexico following regulatory changes.

Several of the world’s top private equity managers have quietly raised billions of dollars from Mexican pension funds, known as afores, since new rules were enacted early last year, filings to the Mexican Stock Exchange and a non-public document reviewed by Reuters showed. Regulators have authorized some managers to raise more over time.

It was not immediately clear how much in total has been raised to date in Mexico by equity managers, which include Discovery Capital Management, General Atlantic, Partners Group, Lexington Partners and HarbourVest Partners.

Their arrival in Latin America’s second-largest economy comes after a regulatory change in January 2018 that allowed foreign private equity managers to tap into $179 billion worth of pension fund assets for the first time and eased some restrictions on how pension funds invest their assets.

Mexico’s lower house of Congress is about to vote on a draft law by Mexican President Andres Manuel Lopez Obrador’s ruling National Regeneration Movement (MORENA) that would give pension funds further flexibility.

Blackstone Managing Director Matthew Pedley said in an interview that pension funds were taking advantage of the recent change in regulation to add exposure to international alternatives and diversify their portfolios.

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