Galena closes first Private Equity Resources Fund at USD400MLooks like Galena has 400M$ to sprinkle across, MWE is their first investment with 33M$ or almost 10% of the fund. If you think these guys are not there to sell their investment higher than what they will be paying for ( 0.12$ ), think again. This stock is a 5-6 bagger in 6-8 months.
Galena Asset Management S.A., the regulated, wholly-owned asset management subsidiary of the Trafigura Group has announced the final close of its first Private Equity Resources Fund with USD400 million of total committed and invested assets. The fund invests in both the equity and debt of small-to medium-sized metals and mining companies, particularly those that are in a development or expansion phase.
Duncan Letchford, Galena’s CEO has described the close as: “Another positive step in the development of Galena after a successful decade in building metal hedge fund and Commodity Trade Finance expertise. Galena’s decision to use Trafigura’s experience and launch a dedicated private equity activity came naturally as institutional investors have increasingly asked us to co-invest with the Group.”
The fund will benefit from the trading and technical expertise of parent company Trafigura: one of the world’s leading commodity trading houses. The investment team joined Galena in 2012 with a successful track record of investing in the mining resources space exclusively for Trafigura since 2005.
In June last year, the fund announced its first transaction in a joint venture with Bowie Resources to acquire Canyon Fuel coal mines in the US to form the largest thermal coal producer in the Western Bituminous region. Jesus Fernandez, the former head of Trafigura’s M&A activities and now Principal of the fund, highlights that: Like other funds, we have seen a number of opportunities this year as the cash buffer of many smaller mining companies is thinning. The more interesting ones have been potential transactions involving companies that work with Trafigura, as our understanding of their businesses is unparalleled.”
The fund will invest in geographically diverse assets, coal mining as well as base, ferrous and precious metals. Fund appointees will assist in the management and strategic direction of companies invested in.