natural resources: metals & mining natural … · we take a look at the unlisted metals &...
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© 2017 Preqin Ltd. / www.preqin.com1
NATURAL RESOURCES: METALS & MINING
alternative assets. intelligent data.
NATURAL RESOURCES: METALS & MINING
2%2%
7%
8% 8% 8%
6%
3%
7%
0.4% 0.2%
6%
2%
9%
5%
4%
2%
4%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
2008 2009 2010 2011 2012 2013 2014 2015 2016
No. of Funds Closed Aggregate Capital Raised
Source: Preqin Natural Resources Online
Prop
ortio
n of
Tota
l
Fig. 2: Unlisted Metals & Mining-Focused Fundraising as a Proportion of All Natural Resources Fundraising, 2008 - 2016
Year of Final Close
We take a look at the unlisted metals & mining-focused fundraising landscape and how it fi ts within the natural resources market, as well as institutional investors that are interested in these vehicles, their investment preferences and future plans.
70.8
4
0.6
12
0.6
12
1.7
6
5.1
167.7
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
No. of FundsClosed
Aggregate CapitalRaised ($bn)
Diversified Multi-RegionalNorth America
Latin America
Europe
Australasia
Asia
Africa
Source: Preqin Natural Resources Online
Prop
ortio
n of
Tota
l
Fig. 3: Unlisted Metals & Mining-Focused Fundraising by Primary Geographic Focus, 2008 - 2016
$5.9bnAggregate capital targeted by
the 13 unlisted metals & mining-focused funds in market
(as at January 2017).
5%of unlisted natural resources funds in market are primarily
metals & mining-focused (as at January 2017).
528institutional investors have a
preference for metals & mining, representing 26% of the natural
resources investor universe.
$979bnAggregate assets under
management of institutional investors with a preference for
metals & mining.
21
5
78
10
7
3
5
0.2 0.1
2.1
0.6
4.63.5
2.3
1.12.1
0
2
4
6
8
10
12
2008 2009 2010 2011 2012 2013 2014 2015 2016
No. of Funds Closed Aggregate Capital Raised ($bn)
Source: Preqin Natural Resources Online
Fig. 1: Unlisted Metals & Mining-Focused Fundraising, 2008 - 2016
Year of Final Close
10
6.2
8
0.46 1.6
61.1
4
0.8
32.6
3 1.9
8 1.9
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
No. of FundsClosed
Aggregate CapitalRaised ($bn)
Other
Canada
Cayman Islands
China
UK
Australia
Chile
US
Source: Preqin Natural Resources Online
Prop
ortio
n of
Tota
l
Fig. 4: Unlisted Metals & Mining-Focused Fundraising by Fund Manager Headquarters, 2008 - 2016
© 2017 Preqin Ltd. / www.preqin.com2
NATURAL RESOURCES: METALS & MINING
alternative assets. intelligent data.
Fig. 6: Five Largest Unlisted Metals & Mining-Focused Funds Closed, 2008 - 2016
Fund FirmFund Size
($mn)
Geographic
Focus
Final
Close
Date
Resource Capital Fund VI
Resource Capital Funds 2,040 Global Jun-13
Sentient Global Resources Fund IV
Sentient Group 1,325 Global May-12
Orion Mine Finance Fund I
Orion Resource Partners
1,140Australia,
Hong Kong, UK, US
Nov-12
Resource Capital Fund V
Resource Capital Funds 1,020 Global May-10
Waterton Precious Metals Fund II
Waterton Global
Resource Management
1,000 Global Apr-14
Source: Preqin Natural Resources Online
20%
17%
16%
9%
6%
5%
5%
15%
Endowment Plan
Foundation
Public Pension Fund
Private Sector PensionFundFamily Office
Bank/Investment Bank
Investment Company
Other
Source: Preqin Natural Resources Online
Fig. 8: Institutional Investors with a Preference for Metals & Mining by Type
Fig. 9: Number of Institutional Investors with a Preference for Metals & Mining by Region
Source: Preqin Natural Resources Online
Fig. 7: Five Largest Unlisted Metals & Mining-Focused Funds in Market (As at January 2017)
Fund FirmTarget
Size ($mn)
Geographic
Focus
Power Capital International Resources Fund
Power Capital 3,000 China
Arete Capital Partners I Arete Capital Partners 1,000 Global
WoodsWater Natural Resource Fund
WoodsWater Capital 500 Canada, UK
Tembo Capital Mining Fund II Tembo Capital 400
Africa, Emerging Markets
Electrum Strategic Opportunities Fund
The Electrum Group LLC 250 North
America
Source: Preqin Natural Resources Online
North America
367
Latin America
2
Europe
78Asia
40
Australasia
9
Sub-Saharan Africa
18
MENA
14
68%
50%
91%
23%
59%
36%
77%
63%70%
76%
59% 61%
0%10%20%30%40%50%60%70%80%90%
100%Ex
plor
atio
n
Refin
ing
Base
Met
als
Prec
ious
Met
als
Ferr
ous
Met
als
Non
-Met
allic
Min
eral
s
Process/Stage Commodity
Proportion of Funds Closed Investor Preference
Source: Preqin Natural Resources Online
Prop
ortio
n of
Tota
l
Fig. 5: Unlisted Metals & Mining-Focused Funds Closed, 2008 - 2016 vs. Investors’ Preferences
© 2017 Preqin Ltd. / www.preqin.com3
NATURAL RESOURCES: METALS & MINING
alternative assets. intelligent data.
5%
15%
10%
37%
22%
11%
Separate Metals &Mining Allocation
Part of NaturalResources Allocation
General AlternativesAllocation
Part of Real AssetsAllocation
Part of Private EquityAllocation
Other Allocation
Source: Preqin Natural Resources Online
Fig. 10: Institutional Investors with a Preference for Metals & Mining by Source of Allocation
24%
87%
23% 23%16%
0%10%20%30%40%50%60%70%80%90%
100%
Agr
icul
ture
/Fa
rmla
nd
Ener
gy
Met
als
&M
inin
g
Tim
berla
nd
Wat
er
Source: Preqin Natural Resources Online
Prop
ortio
n of
Fun
d Se
arch
es
Fig. 11: Fund Searches and Mandates Issued by Institutional Investors over 2016 by Natural Resources Strategy
Strategy
NATURAL RESOURCES ONLINE
Preqin’s Natural Resources Online currently tracks 13 metals & mining-focused funds in market and 59 closed historically.
Natural Resources Online also contains detailed information on 528 investors in natural resources with a preference for metals & mining. Extensive profi les include their investment preferences and future plans.
For more information, or to arrange a demonstration, please visit:
www.preqin.com/naturalresources
Fig. 13: Sample Institutional Investors Targeting Unlisted Metals & Mining-Focused Funds in the Next 12 Months
Investor Type Location Investment Plans for the Next 12 Months
Compagnia di San Paolo Foundation Turin, Italy Will invest €120mn in unlisted natural resources vehicles that focus on agriculture, energy, metals & mining, timberland and water globally.
Credit Suisse Pension Fund Private Sector Pension Fund
Zurich, Switzerland
Considering investment in unlisted natural resources funds with exposure to metals and energy as part of its commodities allocation.
DeBere Partners Investment Company London, UK
Will invest opportunistically in natural resources, with a preference for mining, oil & gas, waste and recycling, service providers and technologies, as well as renewables such as wind and biofuels. It will invest both directly and in funds, considering global investment opportunities.
Source: Preqin Natural Resources Online
42%
27%
16%11%
16%
71%
0%
10%
20%
30%
40%
50%
60%
70%
80%
NorthAmerica
Europe Asia Pacific Rest ofWorld
EmergingMarkets
Global
Source: Preqin Natural Resources Online
Prop
ortio
n of
Fun
d Se
arch
es
Fig. 12: Metals & Mining Fund Searches Issued by Institutional Investors over 2016 by Primary Geographic Focus
Primary Geographic Focus
-