Galena Asset Management has closed its first private equity resources fund with $400 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.
Galena Asset Management S.A., the regulated, wholly-owned asset management subsidiary of the Trafigura Group has announced 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.
Duncan Letchford, Galena’s CEO has described the close as: “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.”
The fund will benefit from the trading and technical expertise of parent company Trafigura: one of the world’s leading commodity trading houses. The investment team joined Galena in 2012 with a successful track record of investing in the mining resources space exclusively for Trafigura since 2005.
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, highlights that: 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.
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Galena Asset Management S.A. on Tel: +41 22 592 4528 or Email: email@example.com
Galena Asset Management
Galena Asset Management was formed in 2003 and is a wholly owned subsidiary of Trafigura Beheer BV. With over USD 2 billion in managed assets, Galena Asset Management operates from Geneva and Singapore, offering investment opportunities through an array of specialised absolute return commodity funds. The funds focus on liquid commodity markets, accessing opportunities through derivatives rather than trading physical commodities. Galena Asset Management S.A. is authorised and regulated by the Swiss Financial Market Supervisory Authority FINMA as an investment fund manager. www.galena-invest.com
Founded in 1993, the Trafigura Group has become one of the world’s leading independent commodity traders, specialising in the oil, minerals and metals markets. Primary trading activities are the supply and transport of oil and petroleum products and non-ferrous and bulk commodities. The trading business is supported by industrial and financial assets including global oil products distribution company Puma Energy; joint venture company DT Group; global terminals operator Impala; Trafigura’s Mining Group and Galena Asset Management. The Trafigura Group is owned by over 700 of its almost 9,000 employees who work in 58 countries. The Group has been connecting its customers to the global economy for more than two decades, growing prosperity by advancing trade.