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Global Fundraising for Natural Resources Private Equity Funds

by Nicholas Jelfs

  • 13 Jun 2011
  • PE

Preqin’s Funds in Market product lists 26 vehicles with a focus on natural resources and timber investment that are currently in market. Collectively, these funds are targeting a little under USD 16.2 billion in capital commitments. 11 have already held at least one interim close and raising just over USD 1.5 billion.

Of the GPs that are raising these natural resources funds, 15 are based in North America of which 13 are located in the US. Only three of the fund managers are based in Europe, with the remaining eight located throughout Asia and Rest of World. In terms of geographical focus, half of the funds target opportunities primarily throughout Asia and Rest of World, with the main areas of focus being China and South America. A further 12 funds focus on investment in North America, and one fund seeks opportunities exclusively in Europe.

The largest natural resources fund currently in market is the Natural Gas Partners X, being raised by NGP Energy Capital Management. The vehicle is seeking USD 4 billion  and targets investments in the oil and natural gas production, energy midstream and oilfield service industries. The fund predominantly focuses on opportunities throughout North America, but has the capacity to invest globally should appropriate opportunities arise.

There are a further two vehicles in market with capital targets in excess of USD 1 billion; the China Mining New Energy Fund and the Sentient Global Resources Fund IV. The former is a CNY 10 billion (USD 1.5 billion) fund targeting China-based mining, renewable energy and clean technology opportunities, and the latter is a global-focused vehicle targeting USD 1.2 billion, that seeks energy, materials, natural resources, and mining investments.

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