City business pursuing lead from Captain America (5)

I believe the answer is:

cusco

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'city' is the definition.
I don't know anything about this answer so I can't tell whether it can be defined by this definition.

'business pursuing lead from captain america' is the wordplay.
'business' becomes 'co' (short for company).
'pursuing' means one lot of letters go next to another.
'lead from' indicates taking the first letters (the letter that leads the word).
'america' becomes 'US' (United States).
The initial letter of 'captain' is 'c'.
'c'+'us'='cus'
'co' put after 'cus' is 'CUSCO'.

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I've seen this clue in The Guardian.

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