Galena Asset Management Ltd., a unit of commodities trader Trafigura Beheer BV, raised $275 million for its Private Equity Resource Fund to invest in metals and mining companies.
The fund aims to have $600 million in assets by December and at that level it would be closed to new investment, Jeremy Weir, Galena’s chief executive officer, said from Geneva. Trafigura provided $100 million in seed capital, he said. Jesus Fernandez, Trafigura’s mining investment chief, will manage the project and move his team to Galena, Weir said.
“It’s a new business for Galena, but effectively Trafigura has been doing it since 2005,” Weir said in an interview yesterday. “We can do more deals, and larger deals.”
Galena, which manages more than $2.5 billion in assets, is expanding in private equity as small and medium-sized mining companies find it harder to access funding. Initial public offerings in 2012 slumped to the lowest level since the financial crisis on signs of an economic slowdown, according to data compiled by Bloomberg.
The fund may do at least three or four transactions this year, Weir said. It will target stakes of between 25 percent and 60 percent in companies involved in coal mining, industrial, ferrous and precious metals, according to Weir.
Trafigura’s revenues fell 1 percent to $120.4 billion in the 12 months ending Sept. 30, according to the company’s website. The Standard & Poor’s GSCI Spot Index of raw materials gained 0.3 percent in 2012, its worst performance since a 43 percent drop in 2008.
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