© 2017 Preqin Ltd. / www.preqin.com1

NATURAL RESOURCES: METALS & MINING

alternative assets. intelligent data.

NATURAL RESOURCES: METALS & MINING

2%2%

7%

8% 8% 8%

6%

3%

7%

0.4% 0.2%

6%

2%

9%

5%

4%

2%

4%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

2008 2009 2010 2011 2012 2013 2014 2015 2016

No. of Funds Closed Aggregate Capital Raised

Source: Preqin Natural Resources Online

Prop

ortio

n of

Tota

l

Fig. 2: Unlisted Metals & Mining-Focused Fundraising as a Proportion of All Natural Resources Fundraising, 2008 - 2016

Year of Final Close

We take a look at the unlisted metals & mining-focused fundraising landscape and how it fi ts within the natural resources market, as well as institutional investors that are interested in these vehicles, their investment preferences and future plans.

70.8

4

0.6

12

0.6

12

1.7

6

5.1

167.7

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

No. of FundsClosed

Aggregate CapitalRaised ($bn)

Diversified Multi-RegionalNorth America

Latin America

Europe

Australasia

Asia

Africa

Source: Preqin Natural Resources Online

Prop

ortio

n of

Tota

l

Fig. 3: Unlisted Metals & Mining-Focused Fundraising by Primary Geographic Focus, 2008 - 2016

$5.9bnAggregate capital targeted by

the 13 unlisted metals & mining-focused funds in market

(as at January 2017).

5%of unlisted natural resources funds in market are primarily

metals & mining-focused (as at January 2017).

528institutional investors have a

preference for metals & mining, representing 26% of the natural

resources investor universe.

$979bnAggregate assets under

management of institutional investors with a preference for

metals & mining.

21

5

78

10

7

3

5

0.2 0.1

2.1

0.6

4.63.5

2.3

1.12.1

0

2

4

6

8

10

12

2008 2009 2010 2011 2012 2013 2014 2015 2016

No. of Funds Closed Aggregate Capital Raised ($bn)

Source: Preqin Natural Resources Online

Fig. 1: Unlisted Metals & Mining-Focused Fundraising, 2008 - 2016

Year of Final Close

10

6.2

8

0.46 1.6

61.1

4

0.8

32.6

3 1.9

8 1.9

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

No. of FundsClosed

Aggregate CapitalRaised ($bn)

Other

Canada

Cayman Islands

China

UK

Australia

Chile

US

Source: Preqin Natural Resources Online

Prop

ortio

n of

Tota

l

Fig. 4: Unlisted Metals & Mining-Focused Fundraising by Fund Manager Headquarters, 2008 - 2016

© 2017 Preqin Ltd. / www.preqin.com2

NATURAL RESOURCES: METALS & MINING

alternative assets. intelligent data.

Fig. 6: Five Largest Unlisted Metals & Mining-Focused Funds Closed, 2008 - 2016

Fund FirmFund Size

($mn)

Geographic

Focus

Final

Close

Date

Resource Capital Fund VI

Resource Capital Funds 2,040 Global Jun-13

Sentient Global Resources Fund IV

Sentient Group 1,325 Global May-12

Orion Mine Finance Fund I

Orion Resource Partners

1,140Australia,

Hong Kong, UK, US

Nov-12

Resource Capital Fund V

Resource Capital Funds 1,020 Global May-10

Waterton Precious Metals Fund II

Waterton Global

Resource Management

1,000 Global Apr-14

Source: Preqin Natural Resources Online

20%

17%

16%

9%

6%

5%

5%

15%

Endowment Plan

Foundation

Public Pension Fund

Private Sector PensionFundFamily Office

Bank/Investment Bank

Investment Company

Other

Source: Preqin Natural Resources Online

Fig. 8: Institutional Investors with a Preference for Metals & Mining by Type

Fig. 9: Number of Institutional Investors with a Preference for Metals & Mining by Region

Source: Preqin Natural Resources Online

Fig. 7: Five Largest Unlisted Metals & Mining-Focused Funds in Market (As at January 2017)

Fund FirmTarget

Size ($mn)

Geographic

Focus

Power Capital International Resources Fund

Power Capital 3,000 China

Arete Capital Partners I Arete Capital Partners 1,000 Global

WoodsWater Natural Resource Fund

WoodsWater Capital 500 Canada, UK

Tembo Capital Mining Fund II Tembo Capital 400

Africa, Emerging Markets

Electrum Strategic Opportunities Fund

The Electrum Group LLC 250 North

America

Source: Preqin Natural Resources Online

North America

367

Latin America

2

Europe

78Asia

40

Australasia

9

Sub-Saharan Africa

18

MENA

14

68%

50%

91%

23%

59%

36%

77%

63%70%

76%

59% 61%

0%10%20%30%40%50%60%70%80%90%

100%Ex

plor

atio

n

Refin

ing

Base

Met

als

Prec

ious

Met

als

Ferr

ous

Met

als

Non

-Met

allic

Min

eral

s

Process/Stage Commodity

Proportion of Funds Closed Investor Preference

Source: Preqin Natural Resources Online

Prop

ortio

n of

Tota

l

Fig. 5: Unlisted Metals & Mining-Focused Funds Closed, 2008 - 2016 vs. Investors’ Preferences

© 2017 Preqin Ltd. / www.preqin.com3

NATURAL RESOURCES: METALS & MINING

alternative assets. intelligent data.

5%

15%

10%

37%

22%

11%

Separate Metals &Mining Allocation

Part of NaturalResources Allocation

General AlternativesAllocation

Part of Real AssetsAllocation

Part of Private EquityAllocation

Other Allocation

Source: Preqin Natural Resources Online

Fig. 10: Institutional Investors with a Preference for Metals & Mining by Source of Allocation

24%

87%

23% 23%16%

0%10%20%30%40%50%60%70%80%90%

100%

Agr

icul

ture

/Fa

rmla

nd

Ener

gy

Met

als

&M

inin

g

Tim

berla

nd

Wat

er

Source: Preqin Natural Resources Online

Prop

ortio

n of

Fun

d Se

arch

es

Fig. 11: Fund Searches and Mandates Issued by Institutional Investors over 2016 by Natural Resources Strategy

Strategy

NATURAL RESOURCES ONLINE

Preqin’s Natural Resources Online currently tracks 13 metals & mining-focused funds in market and 59 closed historically.

Natural Resources Online also contains detailed information on 528 investors in natural resources with a preference for metals & mining. Extensive profi les include their investment preferences and future plans.

For more information, or to arrange a demonstration, please visit:

www.preqin.com/naturalresources

Fig. 13: Sample Institutional Investors Targeting Unlisted Metals & Mining-Focused Funds in the Next 12 Months

Investor Type Location Investment Plans for the Next 12 Months

Compagnia di San Paolo Foundation Turin, Italy Will invest €120mn in unlisted natural resources vehicles that focus on agriculture, energy, metals & mining, timberland and water globally.

Credit Suisse Pension Fund Private Sector Pension Fund

Zurich, Switzerland

Considering investment in unlisted natural resources funds with exposure to metals and energy as part of its commodities allocation.

DeBere Partners Investment Company London, UK

Will invest opportunistically in natural resources, with a preference for mining, oil & gas, waste and recycling, service providers and technologies, as well as renewables such as wind and biofuels. It will invest both directly and in funds, considering global investment opportunities.

Source: Preqin Natural Resources Online

42%

27%

16%11%

16%

71%

0%

10%

20%

30%

40%

50%

60%

70%

80%

NorthAmerica

Europe Asia Pacific Rest ofWorld

EmergingMarkets

Global

Source: Preqin Natural Resources Online

Prop

ortio

n of

Fun

d Se

arch

es

Fig. 12: Metals & Mining Fund Searches Issued by Institutional Investors over 2016 by Primary Geographic Focus

Primary Geographic Focus

-