{"id":1145039,"date":"2019-10-21T15:15:40","date_gmt":"2019-10-21T20:15:40","guid":{"rendered":"https:\/\/www.mining.com\/?p=1004835"},"modified":"2019-10-21T15:15:40","modified_gmt":"2019-10-21T20:15:40","slug":"private-investors-shun-mining-amid-escalated-investor-concerns","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1145039","title":{"rendered":"Private investors shun mining amid \u201cescalated investor concerns\u201d"},"content":{"rendered":"<p>Private capital tracker\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/www.preqin.com\/\" >Preqin<\/a> in a third quarter update outlines &#8220;escalated investors\u2019 concerns&#8221; for natural resource investment with &#8220;geopolitical pressure dictating much of the momentum&#8221; in the industry. <\/p>\n<div class='d-flex justify-content-center'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<blockquote class=\"wp-block-quote\">\n<p>The falling returns, high dry powder levels and record-low fundraising in Q3 have done little to alleviate this uncertainty.<\/p>\n<\/blockquote>\n<p>Fundraising by unlisted funds for investment in natural resources \u2013 oil and gas, timberland, farmland, water and mines \u2013  totalled $8.2 billion during the third quarter, the lowest quarterly tally in over five years.<\/p>\n<p>Preqin\u2019s analysis shows energy-focused funds, mainly oil and gas destined for North America as investments in coal have dried up,  accounts for almost all activity.  <\/p>\n<p>During the September quarter not a single dollar were committed to the 15 mining and metals focused funds currently in the market. <\/p>\n<div class=\"wp-block-image\">\n<figure class=\"alignright\"><img decoding=\"async\" src=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/preqin-natural-resources-dry-powder-.jpg\" alt=\"\" class=\"wp-image-1004838\" srcset=\"https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/preqin-natural-resources-dry-powder-.jpg 386w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/preqin-natural-resources-dry-powder--295x300.jpg 295w, https:\/\/www.mining.com\/wp-content\/uploads\/2019\/10\/preqin-natural-resources-dry-powder--80x80.jpg 80w\" sizes=\"(max-width: 386px) 100vw, 386px\" \/><\/figure>\n<\/div>\n<p>Together these funds are seeking a collective $6.8 billion from so-called limited partners which include sovereign wealth funds, public and private pension funds, foundations, family offices and other entities.<\/p>\n<p>2019 is shaping up to be a dismal year with a mere $100 million raised during a Q2 and an unsuccessful first quarter.<\/p>\n<p>If there is one ray of light for the sector it&#8217;s Preqin&#8217;s quarterly survey which showed 27% of investors are looking to target metals and mining over the next 12 months, up from 11% this time last year. <\/p>\n<h2>$5 billion on the sidelines   <\/h2>\n<p>Four metals and mining funds closed in 2018 and raised $2.5 billion with the bulk of the funds destined for North America.\u00a0<\/p>\n<p>Mining and metals fund managers hold $4.9 billion in dry powder (funds ready to be deployed). These funds also hold $15 billion of investments in the sector that still has to be exited. Oil and gas dwarves the mining sector with assets under management of $569 billion.<\/p>\n<p>Preqin, which has been tracking global private capital flows since 2003, counts 50 active fund managers focused on metals and mining (compared to 751 focused on oil and gas).<\/p>\n<h2>Falling returns<\/h2>\n<p>Preqin&#8217;s Q3 report shows falling returns across all real assets strategies with natural resources funds most affected.<\/p>\n<p>The asset class produced an annualized return of just 5.7% over the one-year period to December 2018.<\/p>\n<p>Despite this, natural resources have outperformed real estate over the three-year period, with an annualized return of 12.6% according to the London-based research company. <\/p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>New report shows private funds raising money for investment in metals and mining came up empty in Q3 and so far this year commitments total a paltry $100m.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[2849,949,369],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1145039"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1145039"}],"version-history":[{"count":3,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1145039\/revisions"}],"predecessor-version":[{"id":1145214,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1145039\/revisions\/1145214"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1145039"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1145039"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1145039"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}