Denham Capital, a U.S. resources and energy-focused private equity firm, has secured US$558 million for its first stand-alone mining fund.
The Denham Mining Fund, backed with commitments from global institutional investors, will target deal opportunities in base metals, metallurgical coal, and industrial and specialty minerals in four regions, including Canada.
Last year, Denham sold its interest in Vancouver-based mining company JDS Silver Holdings Ltd for US$250 million.
Denham Capital to Deploy More Than $550 Million Into Global Mining Sector
HOUSTON & PERTH, Australia — Denham Capital, a leading resources and energy-focused global private equity firm, today announced that it closed its first stand-alone mining fund, the Denham Mining Fund, at $558 million to expand its portfolio in Australia, Canada, South America and Africa.
“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,” said Carl Tricoli, Managing Partner and Co-Founder, Denham Capital. “We are grateful to have the support of our partners who see value in backing our plans to expand Denham’s mining portfolio.”
The Denham Mining Fund (Fund) will continue its strategy of partnering with management teams with proven track records to acquire companies and assets in the metals and minerals sectors, that are close to or already in production. The Fund targets investments in base metals, metallurgical coal, and industrial and specialty minerals in Australia, Canada, South America and Africa.
“It’s an attractive market where we see in many jurisdictions the opportunity to secure projects that meet our investment criteria,” added Bert Koth, Managing Director and Partner, Denham Mining Fund at Denham Capital. “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 closing of the Fund brings the amount of invested and committed capital under Denham’s management to approximately $9.8 billion. The firm’s current mining portfolio includes Pembroke Resources, a Sydney based company pursuing and developing metallurgical coal projects in the Asia-Pacific region, Auctus Minerals, a Perth-based company developing base metals assets throughout Australia; Mining Ventures Brazil, a company currently developing a heavy rare earths project in Brazil; Pangea Limited, a Johannesburg based African mining platform targeting and developing projects in several African countries; Santiago Metals, a Chilean mining venture developing copper mines in Chile; and Stellar Mining, a mining and exploration company in Peru. The firm announced the sale of JDS Silver in 2017.
Denham raised the Fund with third-party commitments from institutional investors globally, representing leading foundations, endowments, public and private pension funds, sovereign wealth funds and family offices. Latham & Watkins LLP served as the Fund’s legal counsel and First Point Equity acted as placement agent.
About Denham Capital
Denham Capital is a leading energy and resources-focused global private equity firm with more than $9.8 billion of invested and committed capital across nine fund vehicles and offices in London, Boston, Houston, São Paulo and Perth. The firm makes direct investments in the energy and resources sectors, including businesses involving international power, oil and gas, and mining, across the globe. Denham’s investment professionals apply deep operational and industry experience and work in partnership with management teams to achieve long-term investment objectives. For more information about Denham Capital, visit www.denhamcapital.com.
Pierpont Communications for Denham Capital
Krystal Patout, +1 713-627-2223