Appian Capital Advisory, the mining-focused private equity firm, has raised $2 billion for its latest fund, Fund III.
The fund’s hard cap was raised to $2.06 billion due to an overwhelming response from new major investors and existing top-tier backers.
This brings Appian’s assets under management to approximately $4 billion.
The Founder and CEO of Appian, Michael Scherb, expressed his excitement about the successful fundraising, stating that it is a testament to the firm’s approach of partnering with mining companies to create long-term value.
Appian’s investor base includes several new large global investors, in addition to strong backing from the firm’s existing top-tier investor base.
Appian’s success in raising funds for its latest fund is a reflection of renewed investor interest in the mining sector. As the global economy recovers from the pandemic, investors are looking to take advantage of opportunities in the mining industry. With Fund III, Appian is well-positioned to capitalize on these opportunities and continue to create value for its investors.
Appian Capital’s Latest Fund
Appian Capital Advisory, a mining-focused private equity firm, has raised $2 billion for its latest fund, Fund III. The fund was heavily oversubscribed, with strong backing from Appian’s existing top-tier investor base, as well as several new large global investors, bringing assets under management to ~US$4 billion.
Investment Focus
Appian’s Fund III is focused on investing in high-quality mining assets, with a particular emphasis on copper, nickel, zinc, and gold. The fund is also looking to invest in companies that can provide inflation protection and credit opportunities. Appian’s long-term value-focused private capital funds aim to generate attractive returns for investors while also delivering sustainable benefits to local communities and stakeholders.
Investor Base and Support
Appian’s Fund III received strong support from both new and existing Tier 1 investors. The fund’s hard cap was raised to $2.06 billion due to overwhelming response from major investors and existing top-tier backers. The fund’s investor base includes pension funds, sovereign wealth funds, endowments, and family offices.
Appian’s strong track record in the private equity sector has been a major factor in attracting investors to its funds. The firm’s previous funds have delivered attractive returns to investors, with a focus on generating long-term value and sustainable benefits for local communities.
In conclusion, Appian Capital Advisory’s latest fund, Fund III, has raised $2 billion, doubling its assets under management to ~US$4 billion. The fund is focused on investing in high-quality mining assets, with a particular emphasis on copper, nickel, zinc, and gold, and is looking to invest in companies that can provide inflation protection and credit opportunities. The fund received strong support from both new and existing Tier 1 investors, including pension funds, sovereign wealth funds, endowments, and family offices.
Performance and Strategy
Previous Funds’ Performance
Appian Capital Advisory has a strong track record of delivering outsized returns to investors. Funds I and II have both exceeded their targets, with Fund II generating a net internal rate of return (IRR) of 39% as of June 30, 2023. The success of these funds has led to strong demand for Fund III, which has raised $2.06 billion.
Technical Arbitrage Approach
Appian Capital Advisory uses a technical arbitrage approach to identify undervalued mining assets and management teams. This approach involves a deep understanding of the mining industry and the ability to identify and exploit pricing inefficiencies in the market.
The firm’s technical team includes mining engineers, geologists, and metallurgists who have extensive experience in the mining industry. They use their technical expertise to evaluate mining assets and identify potential operational improvements that can increase production and profitability.
Appian Capital Advisory also has a co-investment pool that allows the firm to invest alongside its portfolio companies. This approach aligns the interests of the firm and its portfolio companies, and provides additional capital to support growth initiatives.
With a global remit, Appian Capital Advisory invests in mining and mining-related companies, assets, and management teams across select geographies and commodities. The firm’s focus on the mining industry allows it to develop deep industry expertise and build strong relationships with management teams.
In summary, Appian Capital Advisory’s technical arbitrage approach and focus on the mining industry have enabled the firm to generate strong returns for investors. The success of Funds I and II has led to strong demand for Fund III, which has raised $2.06 billion and more than doubled the firm’s assets under management.
Investment Portfolio
Appian Capital Advisory has raised $2 billion for its latest fund, which will invest solely in mining and mining-related companies. The private equity firm has a strong track record of matching quality assets with long-term capital and operating expertise.
Metals and Mining
Appian’s portfolio includes a number of precious metals companies, including Osisko Metals. Osisko is focused on the exploration and development of zinc and lead projects in Canada. The Pine Point Zinc-Lead Project, which is located in the Northwest Territories, is one of Osisko’s key assets. The project has a mineral resource estimate of 38.4 million tonnes grading 4.58% zinc and 1.85% lead.
Another key player in Appian’s portfolio is Roxgold, which operates the Yaramoko gold mine in Burkina Faso. The mine has a mineral reserve estimate of 1.8 million ounces of gold and has been in commercial production since 2016.
Energy Transition
Appian is also committed to investing in the energy transition. The firm has invested in Detronic Energia, a Brazilian company that develops and operates solar power plants. Detronic has a portfolio of over 300 MW of solar power plants in operation or under construction in Brazil.
Appian is also shifting its focus from oil and gas to critical minerals supply. The firm believes that the demand for critical minerals, such as lithium and cobalt, will increase as the world transitions to cleaner energy sources.
In summary, Appian’s investment portfolio is focused on the metals and mining industry, with a particular emphasis on precious metals. The firm is also committed to investing in the energy transition, with a focus on solar power plants. Appian is shifting its focus from oil and gas to critical minerals supply, in response to the growing demand for these minerals in the transition to cleaner energy sources.
Management and Advisors
Executive Team
Appian Capital Advisory’s executive team is led by Founder and CEO Michael W. Scherb. He is supported by a team of experienced professionals who have a deep understanding of the mining industry. The team seeks to work alongside the management teams of respective portfolio companies to ensure that they achieve their full potential.
Advisory Board
Appian Capital Advisory’s advisory board includes Charles O’Brien, Richard Crowley, and Michael Stock. The board provides strategic guidance and support to the firm’s management teams. They bring a wealth of experience and expertise in the mining industry and have a track record of success.
Charles O’Brien is the founder and CEO of FGS Global, a company that provides advisory services to the mining industry. He has over 30 years of experience in the mining sector and has held senior positions at several mining companies.
Richard Crowley is a mining engineer with over 30 years of experience in the industry. He has held senior positions at several mining companies, including Anglo American and Barrick Gold.
Michael Stock is a mining engineer with over 25 years of experience in the industry. He has held senior positions at several mining companies, including Rio Tinto and BHP Billiton.
The advisory board’s primary role is to provide strategic advice and guidance to the firm’s management teams. They also assist in identifying potential investment opportunities and development targets for the firm’s global operating portfolio.
Overall, Appian Capital Advisory’s management team and advisory board bring a wealth of experience and expertise to the firm.
They are well-positioned to identify and capitalize on opportunities in the mining industry, and to work with portfolio companies to achieve long-term success.
Feature Photo by Pedro Henrique Santos
