{"id":659773,"date":"2018-04-09T23:43:04","date_gmt":"2018-04-09T23:43:04","guid":{"rendered":"http:\/\/juniorminingnews.com\/?p=659773"},"modified":"2018-04-09T23:43:04","modified_gmt":"2018-04-09T23:43:04","slug":"private-capital-flowing-into-mining-on-track-for-record-year-2","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=659773","title":{"rendered":"Private capital flowing into mining on track for record year"},"content":{"rendered":"

By analyst<\/a><\/span> <\/p>\n

By Frik Els<\/a><\/span> <\/p>\n

Those worried that the positive momentum in the mining and metals sector is beginning to wane after two years of strong gains may find encouragement from a new survey<\/a> by private capital tracker Preqin.<\/p>\n

Fundraising by unlisted funds for investment in mining and metals was a non-starter last year. A single private capital fund closed last year after rustling up all of $24 million.<\/p>\n

A further 13 funds targeting the mining sector are currently in the market, seeking a combined $4.9 billion<\/p>\n

The total included $5.1 billion of capital raised by diversified natural resource closed-end funds, which may allocate a small portion to mining, but overall institutions shunned the industry.<\/p>\n

Three months into 2018 and the environment couldn’t be any different.<\/p>\n

Orion Mine Finance in February closed on the largest mining-focused fund in five years, and the second biggest fund dedicated to the sector in history. The New York-based firm closed on its Fund II after securing $2.1 billion including a co-investment vehicle. That brings total funds raised by Orion, over the last 10 years to more than $6 billion.<\/p>\n

Orion is not wasting time finding targets for Fund II either and has already completed six deals with nearly $830 million committed to investment. The company also exited two large Fund II investments last year, selling a global portfolio of assets to Osisko Gold Royalties in a $1 billion transaction in July and a zinc mine in Macedonia that fetched a reported $400m in November last year.<\/p>\n

Two other small mining funds closed during Q1 and, according to Preqin’s 2018 Global Natural Resources report, a further 13 funds are currently in the market targeting the mining sector, seeking a combined $4.9 billion from so-called limited partners which include sovereign wealth funds, public and private pension funds, foundations and family offices.<\/p>\n

43% of fund managers believe it has become easier to find attractive investment opportunities compared to a year ago<\/p>\n

If successful, it would make 2018 the best year ever for the sector. 2012 was the peak year for mining fundraising with $4.6 billion of capital commitments from investors.<\/p>\n

Preqin also found that 43% of fund managers in the metal and mining space believe it has become easier to find attractive investment opportunities compared to a year ago. A majority of those surveyed say mining assets are priced about right, or consider them cheap. A third of the fund managers also say that competition for the best deals in the field has become more competitive.<\/p>\n

As of June 2017, the latest data available, mining and metals fund managers hold $6 billion in so-called dry powder (funds ready to be invested). Unlisted mining assets under management total $15 billion.<\/p>\n

Across the natural resources sector which is dominated by oil and gas, 85 funds secured $70 billion in 2017.<\/p>\n

The private capital space has experienced rapid growth over the last decade with overall assets under management approaching $5 trillion, some $533 billion of which is classified as natural resources investment such as water, timberland, mining and metals, and oil and gas.<\/p>\n

Private capital includes traditional private equity such \u2026read more<\/a> <\/p>\n

Source:: Infomine<\/a><\/p>\n

The post Private capital flowing into mining on track for record year<\/a><\/a> appeared first on Junior Mining Analyst<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

By analyst By Frik Els Those worried that the positive momentum in the mining and metals sector is beginning to wane after two years of strong gains may find encouragement from a new survey by private capital tracker Preqin. Fundraising by unlisted funds for investment in mining and metals was a non-starter last year. A […]<\/p>\n","protected":false},"author":1,"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":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/659773"}],"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\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=659773"}],"version-history":[{"count":0,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/659773\/revisions"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=659773"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=659773"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=659773"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}