Galena Asset Management has held the final close of its first Private Equity Resources Fund with USD400 million of total committed and invested assets.
The fund invests in both the equity and debt of small-to medium-sized metals and mining companies, particularly those that are in a development or expansion phase.
The fund will benefit from the trading and technical expertise of parent company Trafigura.
The investment team joined Galena in 2012 with a successful track record of investing in the mining resources space exclusively for Trafigura since 2005.
Duncan Letchford, Galena’s chief executive, says: “Another positive step in the development of Galena after a successful decade in building metal hedge fund and commodity trade finance expertise. Galena’s decision to rely on Trafigura’s experience and launch a dedicated private equity activity came naturally as institutional investors have increasingly asked us to co-invest with the group.”
In June last year, the fund announced its first transaction in a joint venture to acquire the Bowie and Canyon Fuel coal mines in the US.
Jesus Fernandez, the former head of Trafigura’s M&A activities and now principal of the fund, says: “Like other funds, we have seen a number of opportunities this year as the cash buffer of many smaller mining companies is thinning. The more interesting ones have been potential transactions involving companies that work with Trafigura, as our understanding of their businesses is unparalleled.”
The fund will invest in geographically diverse assets, coal mining as well as base, ferrous and precious metals. Fund appointees will assist in the management and strategic direction of companies invested in.
