London-based Appian Capital Advisory has closed its debut metals and mining fund on $375 million. Fund I will invest in metals and mining companies in Latin America, North America, Africa and Europe. Appian Natural Resources Fund also has access to a co-investment pool. Mercury Capital Advisors worked as placement agent on the fundraising.
Appian Natural Resources Fund LP (“Appian” or “the Fund”) is pleased to announce its final institutional closing as a specialist metals and mining private equity fund with limited partner commitments of US$375 million.
The Fund has been established to invest specifically into metals and mining companies or projects in selected jurisdictions in which it sees attractive investment opportunities. Bringing together a collection of highly experienced operational mining, private equity and investment banking professionals, Appian has a uniquely collaborative investment approach that seeks to build investor value through the provision of capital and operating expertise, assisting mining companies to optimise development of operations and, ultimately, enhancing returns. The Jersey based Fund will focus on investing in small to medium-sized assets or companies in the metals and mining sector in selected regions in Latin America, North America, Africa and Europe, partnering with local owners, managers and investors to leverage its world class operational and corporate expertise to generate significant value for the Fund’s investors and other stakeholders. The Fund’s network also provides access to an additional and significant pool of capital, which has the potential to participate in co- investment opportunities alongside the Fund.
World Class Operational and Corporate Expertise
Headquartered in London, with an international network in key mining cities, the Fund’s advisor, Appian Capital Advisory LLP, has a senior management team that is a combination of professionals from major mining companies, private equity firm and investment banks, bringing together over 150 years of combined mining experience. In aggregate they have managed in excess of 60 mines through to production and concluded over $200 billion worth of mining sector transactions, while generating significant returns for investors. With a successful track record of value creation across the full mining life cycle, the team’s strong operating and corporate skills are available to support management teams to optimise assets and ramp up operations that deliver value and generate attractive returns.
Collaborative and Strategic Approach to Investing
Alongside management, Appian is able to draw on the team’s talent pool of leading industry professionals to combat the current sector skill shortage and improve project delivery at its investments. The Fund’s long-term investment horizon and investment size of between US$10 – US$100 million provide management teams with a patient and supportive investor. By removing financing risk, local management will be able to concentrate their efforts on the development and optimisation of their assets to generate long-term value while continuing to draw on the support of Appian Capital Advisory LLP’s operating and financial teams and network throughout the investment period.
The Jersey based Fund will focus its investments primarily on near-term production opportunities where a resource has been clearly delineated and first production is targeted within 3 years. The management team will also evaluate value-enhancing opportunities at brownfield or distressed assets, or producing assets with significant expansion potential. With a flexible mandate, the Fund will invest in both public and private companies at the asset or corporate level.
Michael W. Scherb, Founder, commented:
“We are extremely pleased to be launching the Appian Natural Resources Fund, and have been strongly supported by some of the world’s most established and highly regarded investors. We believe that our unique business model, offering companies not only access to transformative capital but also critically important operational, financial and technical support, will enable Appian to achieve its target returns and be a stable long term and collaborative partner for management teams and projects.”
Mercury Capital Advisors, the global private fund raising and financial advisory firm, acted as exclusive placement agent for the successful raise of the Fund.