A $9.8 billion global private equity firm with investments in Sydney and Perth mining companies has attracted interest from several institutional investors for its first mining fund.
Denham Capital has just closed its Denham Mining Fund at $558 million.
The firm says family offices, public and private pension funds, sovereign wealth funds and endowments represented by institutional investors have made third party commitments to the fund.
It is now eyeing local opportunities, as it looks to expand its portfolio in countries including Australia. Its strategy targets investments base metals, metallurgical coal, and industrial and specialty minerals in Australia, Canada, South America and Africa.
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"It's an attractive market where we see in many jurisdictions the opportunity to secure projects that meet our investment criteria," Denham Mining Fund managing director and partner Bert Koth said.
"We seek to partner with local management teams who understand capital efficiency and can demonstrate edge in accessing opportunity and execution through their superior technical experience and regional knowledge."
The fund's current Aussie holdings include Pembroke Resources, a Sydney-based company pursuing and developing metallurgical coal projects in Asia Pacific and Auctus Minerals, a Perth-based company developing base metals assets throughout Australia.
"The close of our first mining fund marks a significant and strategic milestone for Denham Capital. We are pleased that our limited partners share our belief that there is a robust pipeline of opportunities across the global mining sector and that they chose to work with us," Denham Capital managing partner and co-founder Carl Tricoli said.
The fund brings the amount of capital committed or invested under Denham to $9.8 billion.