RCF; Getting to Know You, page-2

Here is a bit more background to our well capitalised major investor with two accounts of the  origin of RCFVII ..

First a news story from October 2016 from the well-informed Bridget Carter at The Australian who had a scent of times, or at least funds  to come way back in October 2016!
(I had thought Fund Seven wasn’t put together until 2018!!)

hmmm EDIT/ UPDATE it wasn’t put together till 2018! but Bridget’s story has lots of interesting background, so I’ll put it in the spoiler:

Spoiler : RCF Rumours 2016

https://www.theaustralian.com.au/bu...s/news-story/05f798d7ed98dd8324d8724bd60cbb13

Resource Capital Funds raises $3.3bn for miners

• By BRIDGET CARTER
  DATAROOM EDITOR
  @BridgetCarterb
• 12:00AM OCTOBER 28, 2016

Mining-focused private equity heavyweight Resource Capital Funds is pulling together $US2.5 billion ($3.3bn) in new funding, much of which will likely find its way into Australia’s listed miners and explorers.

The Australian understands that RCF, which is led by founder James McClements and has strong ties to the Rothschild family, is well advanced in securing the cash for what will be its seventh fund.

RCF is one of the world’s most active investors in the resources sector, with the group having stakes in 155 companies working in 49 countries around the world in 29 different commodities.

The latest fundraising will be the largest in RCF’s history, eclipsing the $US2bn pulled in by its sixth fund in 2013.

The latest raising comes on the back of a recovery in resource stocks, which have been the best performing equity class this year following recoveries in gold, iron ore and gold and a boom in lithium.

RCF has typically represented a strong funding option for smaller a year’s looking to find a way into production.

The group, established in Denver in 1998 and which opened its Perth office in 2001, has had a mixed record in recent years with Australian listed stocks. It has backed promising gold development play Gold Road Resources but has had less favourable experiences with Congo copper miner Tiger Resources and British tungsten miner Wolf Minerals.
This week it agreed to tip extra funds into Tiger and extend the terms on its lending to the group after the latest operational issues at Tiger’s Kipoi mine.
It also negotiated a debt restructuring and extra funding for Wolf, which has suffered from a slower than expected ramp-up of its Drakelands mine in Wales as well as soft tungsten prices.

Other local plays with which RCF is involved include Metalicity, MZI Resources, Peninsula Energy, and Vimy Resources.

Meanwhile, Mick Davis’ X2 Resources has freed investors from their financial commitments after failing to clinch any deals in three years on the back of a move by Noble to withdraw a $US500 million commitment from the vehicle, according to offshore reports.

According to WSJ, James Mclements & co might have  been pregnant with #VII in late 2016 but the stork didn’t arrive to deliver the new fund until  about 18 months later;

https://www.wsj.com/articles/resource-capital-raises-540-5-million-towards-seventh-fund-1518106706

Resource Capital Raises $540.5 Million Towards Seventh Fund


By Ed Ballard

Feb. 8, 2018 11:18 am ET

Resource Capital Funds, a private-equity firm that invests in mining projects across the world, has raised at least $540.5 million for its seventh fund after a year on the fundraising trail, according to a filing with the U.S. Securities and Exchange Commission.

The Denver firm has set a $2 billion target for the fund, Resource Capital Fund VII, the SEC filing said.
WSJ Pro Private Equity reported in February last year that the firm had launched the fund, citing an initial SEC filing.

If the new fund hits the fundraising target, it would roughly match the size of predecessor, Resource Capital Fund VI LP, which closed on $2.04 billion in 2013, according to Resource Capital’s website. The firm’s fifth fund gathered $1.02 billion and closed in 2009.

The firm is attempting to raise its seventh fund amid a quiet period for natural resources-focused fundraising. According to data provider Preqin Ltd., only one mining-focused fund held a final close last year—Redhawk Minerals Fund I, which collected $23.5 million.

That made 2017 the slowest year by volume of capital raised since 2010, when Preqin began tracking money raised for the sector. In 2016, by contrast, eight funds hit a final close, raising $2.4 billion between them. The busiest year for the sector was 2013, when 10 natural resources funds collected $3.5 billion, according to Preqin data.

Resource Capital’s latest fund is the second-largest currently being raised for natural resources investments, ranked by target size, according to Preqin’s data. China-based Power Capital began raising a fund targeting $3 billion in 2016, Preqin said.

Other firms currently raising money include Australia’s Arete Capital Partners, which is targeting $500 million for its first fund, and Denham Capital Management, a U.S. firm that is seeking to raise $750 million, according to Preqin.

Resource Capital has invested in 166 mining companies since it was founded in 1998 by former N.M. Rothschild & Sons Ltd. executives James McClements and Hank Tuten, according to its website.

The firm invests in mining projects at all stages of development around the world from offices in Australia, Canada and Chile, as well as the U.S. The firm typically invests from $10 million up to approximately $300 million per deal, but can finance deals as large as $500 million, its website says.

Resource Capital’s current portfolio includes an array of mining companies such as Alufer Mining Ltd., a bauxite mining company with assets in the Republic of Guinea, and MZI Resources Ltd., which is developing mineral sands projects in Western Australia.