CD Capital and PCE Investors have launched the CD Private Equity Natural Resources Fund which is designed to take advantage of the commodities super-cycle driven by the strong growth in the BRIC countries (Brazil, Russia, India and China).
The fund will be established by chief investment officer Carmel Daniele who was, until recently, at RAB Capital. Prior to that, she had been in various corporate finance roles at Newmont Mining/Newmont Capital, Normandy Mining, LaSource SAS (joint venture with Le Bureau de Recherches Géologiques et Minières), PosGold and Deloitte. Other central members of the team include natural resources specialists, Gordon Toll, Technical Director- previously with Ivanhoe Mines and Rio Tinto - Peter Hedger, Mining Finance Analyst, and Emil Morfett, Consultant Mining Geologist.
A cornerstone early investor in the Fund is the leading natural resources investor, Lukas H. Lundin Chairman of Lundin Mining Corporation.
The investment objective of the new fund is to achieve capital growth through pre-IPO and other early investment in the natural resources sector targeting opportunities which could deliver substantial returns on exit.
The fund will have an opportunistic strategy, with no commodity or geographic restrictions. It is designed to invest in all natural resource entities focussed on zinc, copper, nickel, tungsten, molybdenum, uranium, coal, steel, iron ore, gold, silver, diamonds, oil and gas.
Structured as an unlisted fund incorporated in the Cayman Islands, the objective is to raise USD 100m and the fund is currently scheduled to close on 31 October 2006. Management fees are 2% with performance fees of 20% and the minimum investment is USD 1m, with a three-year lock up and annual liquidity thereafter with a 12 month notice period. The prime broker is Goldman Sachs.
'I am very excited to be launching this fund with one of the world's leading natural resources investor, Lukas Lundin, as my cornerstone investor and to have a team that knows the sector so intimately,' says Daniele. 'In this leg of the super-cycle it's important to invest in companies that have a growth strategy so you can still make money if commodity prices don't rise. This fund is designed to do just that.'
Patric de Gentile-Williams CEO of PCE Investors, adds: 'We are pleased that CD Capital has chosen to appoint PCE Investors to launch one of the world's first private equity funds in the natural resources space. Carmel and her high calibre team make a prestigious addition to the platform.'