Preqin Quarterly Update: Natural Resources, Q3 2016
Q3 saw a marked uptick for unlisted natural resources fundraising, with 15 funds reaching a final close securing a combined $25bn in investor commitments. However, there is a divergence in where the commitments are flowing as half of funds closed in 2016 failed to reach their initial target. Energy-focused funds continue to dominate the industry, with little activity in other sectors. A protracted period of losses and uncertainty for the mining industry has seen interest withdraw, while agriculture has seen very few funds raised despite being the second largest sector in natural resources. In line with struggling commodity prices, the performance of the asset class continued to fall into the tail end of 2015.