Mining Private Equity Firms
Does anyone know any mining Private Equity firms? And what’s the value proposition like? IRR, MoM? Looks like a well-diversified portfolio can sell high: Coal, Diamonds, Gold, Venture, Growth etc?
Trending Content
| +57 | Ex Apollo Associate Q&A (But I Actually Answer) | 100 | 2m | |
| +39 | How to Model SaaS Projections for Interviews | 49 | 12h | |
| +34 | [Technical doubt]: Cash sweep and mandatory amortization | 9 | 2s | |
| +33 | Q&A - Anything about PE / MBA / Life | 43 | 2h | |
| +23 | European Megafunds (based on PEI 2023) | 17 | 1d | |
| +22 | Is internal reporting at most funds really so Excel & PPT heavy still? | 7 | 8h | |
| +22 | Partners Group Long Term | 8 | 10h | |
| +18 | Advent NYC Culture/WLB - 2024 update | 6 | 50m | |
| +18 | How is your life in PE? | 10 | 1d | |
| +17 | Moving from PE Fund accounting to top 3 rating agency | 5 | 2d |
Career Resources
To name a few: Resource Capital (Denver) Sentient Global Resources Orion Resource Partners (New York) Waterton (Toronto) Tembo Capital (London) Greenstone Resources (London) Appian (London) Denham (Boston) Lime Rock (Westport, CT)
Returns on Funds: YYYY | Net IRR | Net Multiple Resource Capital Fund III: 2003 | 22% | 1.99x Resource Capital Fund IV: 2006 | 21% | 1.94x Resource Capital Fund V: 2009 | n/a | 0.78x Resource Capital Fund VI: 2013 | n/a | 1.20x Waterton Precious Metals Fund II: 2013 | 13.3% | 1.25x Tembo Capital Mining Fund: 2014 | 5.4% | 1.03x
Numbers are slightly tweaked, but this should give you an impression on performance for the industry. Also note these aren't fully deployed fund figures.
I quickly ran through your last few topic discussions and I had a few questions or comments.
Why not raise money in London/Europe as opposed to the U.S.? I only say this since London is largely the mining sector's go-to hub for capital. There are a lot of good natural resource PE firms in the U.S. but most are in Denver or are energy-related. Also mining PE is having a difficult rap right now, many LPs feed capital into listed-mining ventures which are able to operate pretty lean and are run similar to a PE firm.
Our PE firm will be listed on an exchange as a Special Purpose Acquisition Company (SPAC) or a mining Investment Company. I think London may do...do you contacts? Most companies operating in Botswana are from London and we also work with BMI research from London.
Are you assuming a 5 year holding period for the MoM figures?
I know RCF, I have chatted to them but they didn't show much interest.
I should of clarified, MoM figures are to date, so funds that haven't been fully deployed are distributed back to investors could have a higher MoM than currently realized.
A number of the questions you’ve been asking are good questions that many managers ask their investment bankers/private fund advisors to advise them on. Therefore I don’t think you’ll find the answers you want or need on WSO.
Questions like what investment vehicle to use, what investors to target, and share issuance and price are difficult questions to answer in their own right and involve teams of people (bankers, advisors, consultants, lawyers, etc.) just to get it right.
WSO is loosely targeted toward early careers and very high-level Q&A. While there are very experienced and good investment bankers and PE guys on the site, they can only help so much with the limited information they have to go off of here.
If I were you I would network hard with the guys in South Africa and Botswana first and get their thoughts on the topic. I think what you are skipping over is that South Africa has the world’s leading minds on mining and finance. I am a little bit biased on South Africa here but do not underestimate the network around you. All the major banks have offices in Johannesburg with deal teams that deal with natural resources on a daily basis. Even if you could get some time with a consultant or two that could be beneficial to your end goal.
The guys on the ground in South Africa, will have a better idea than any whether your venture is feasible. Also on a side note, the institutional LPs in London and the U.S. will make reference calls to the same guys in South Africa if they are seriously considering investing in your project or not. Just some things to think about.
I only bring up London as possibly an easier pool of capital since investors will have better ties and better knowledge on Botswana than their U.S. counterparts. Plus, if you’re going to U.S. retail investors there is a good chance they will ask you what the effect of Ebola and Boka Haram are to your business. These are probably questions you don’t want to have answered when you have bigger concerns to be worried about like lower commodity prices, foreign exchange risks, and ESG issues.
Thanks a lot for your detailed responses. I have built a network...but I agree that I could do more. I have engaged SRK consulting who advise me regularly on he mining side, but not as much on the deal side. I will definitely reach out more here!
Mining private equity...land of the geoscientist in finance? (Originally Posted: 01/03/2013)
I've seen a lot of private equity funds specializing in mining with odd, nontraditional associates and partners. Ie, philosophy, and more often geology.
How does that work? Do people simply work with a mining company as a geologist for some time and then switch over? After MBA? Do you need to have previous finance experience or is it all networking?
Hey, interned at an oil & gas PE firm-- among the most valuable members was a guy who was an O&G engineer for ~6,7 years, knew the field very well and had made valuable connections during that time, then went to business school. The firm had 2-3 people like that, and truly, they were held in very high esteem.
If it's about switching over, I guess that's what happens. I guess you also gotta make sure to meet the right people during business school and if you don't, make sure to network the hell out of every possible fund. I found that in the end, it's a lot of project management, and all the engineers and stuff tend to be exposed to that, and it's not that bad. Just know what you are talking about. For undergrad, I know some banks like Tudor Pickering take geologists and engineers right off from school.
That is very helpful. Thanks a bunch! It is reassuring to know that...I will be taking as many Econ classes as I can, haha.
In other news - bump. Any other thoughts, anyone?
This is a long time ago but as a newcomer to the USA, I was previously working in the mining finance world in London including running investment conferences. Please let me know if this is still current? Mining doesn't tend to move very fast in this market!
I work for a Luxembourg-based mining-focused investment fund (not really a traditional PE, more of a family office structure). Would be glad to chat with you!
I have a very good connection in Luxembourg that I can introduce you to or you may already know. See www.MMG.capital/team/ - I'm on there as well. Can you let me know what your key investment criteria are: Stage in project life cycle?; metal or mineral?; geography?; public or private? Any other factors that I should consider. I'm specialising in US/Canadian Mining Companies with European or African projects.
Hi Max 1,
Do you have an email that I can email you at about a mining deal?
Hi. I would be interested in connecting with you as i am based in Luxembourg and have mining experience. can you let me know how to get in touch with you?
Hi, I am working on a deal for iron. Would you be available to chat?
Hi. I would be interested in connecting with you as i am based in Luxembourg and have mining experience. can you let me know how to get in touch with you?
Hey, I'm in mining. I work for a fund and incubated several exploration companies. What were you looking for? Deal flow? Project financing?
Can you let me know what your key investment criteria are: Stage in project life cycle?; metal or mineral?; geography?; public or private? Any other factors that I should consider. I'm specialising in US/Canadian Mining Companies with European or African projects at the early stages - I do also look at the Americas but try and keep to the USA and South America selectively. I have a number of companies at the moment that I'm really excited about in Africa; the USA and Colombia.
I have an American company with early stage African projects in Coltan, Rough Diamond and Gold. Where can I send our criteria ?
Hi bluegold, I am working on structuring a deal for an iron mine. Would you be interested in talking and learning more?
Bump. Any intel on comp/lifestyle/culture for some of the established mining funds (i.e. Orion, EMR, Pala, RCF, Triple Flag, etc)?
bump
bump
I know muddy waters capital recently acquired a mining company, it was recent (in last two weeks) you could do some digging on that.
Voluptatem aliquam totam velit ea. Debitis adipisci repudiandae sit culpa. Ratione soluta aspernatur et harum asperiores. Soluta aut rem in est neque officiis recusandae.
Voluptates reprehenderit nesciunt autem minima. Inventore et quam quod.
Sunt qui quia error assumenda. Voluptatibus quae nihil non quia. Dolor quos minus exercitationem labore dolores velit. Necessitatibus recusandae nulla velit voluptatum minus ea. Architecto dicta necessitatibus molestias aut repellendus.
Est nihil qui odit eos aliquid in. Quia quia perferendis sapiente laborum et minima est. Aut voluptatem est asperiores ratione animi.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Sint eum eius commodi ducimus quas. Sunt est nostrum recusandae deleniti magni. Repellendus excepturi facilis quos dolor. Distinctio rerum et fugiat officiis ut atque officiis. Culpa expedita est consectetur sit quo et. Quo explicabo sequi distinctio.
Ipsa velit quam fugiat. In veniam aut facere tenetur sequi laboriosam aut. Perferendis omnis harum exercitationem odio debitis praesentium animi. Ad dolorem voluptas voluptatem unde quae omnis.
Quia veniam debitis ipsam quo ab. Ea voluptatem dignissimos occaecati occaecati et qui vitae. Non in et fuga et voluptas. Laborum perspiciatis omnis est sed voluptas.
Corrupti qui illo sequi exercitationem adipisci soluta omnis. Voluptatem omnis blanditiis et laborum nobis velit. Iure commodi hic consequuntur inventore aut nam. Est dolores qui expedita eligendi rerum aliquid. Illum ut commodi impedit fugit ad. Ad ab minima nesciunt non.