Private capital is ready to invest $7 billion in mining – by Frik Els ( – March 20, 2016)

Half of private capital funds say it’s easier to find attractive investments in the sector new study finds

According to a study of private capital in the resources sector from industry tracker Preqin, finds half of investors in the mining and metals sector will deploy more capital this year despite two-thirds of institutional investors displaying less appetite for the sector compared to a year ago.

The pullback comes after fundraising for natural resources investment reached record levels in 2015, with 74 funds raising a total of $67.8bn.

In total natural resources investment firms have $400 billion assets under management. Of this $243 billion represent unrealized value with the remaining $157.3 billion so-called dry-powder capital ready to invest. The vast majority is destined for North America.

Only $6.9 billion of the dry powder money in 2016 is for metals and mining although a portion of the diversified funds’ $9.7 billion will also go into projects and assets in the sector. Fund managers also still have to exit some $8.3 billion in mining investments.

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