Why Private Fund Investment In Mining Is A Good Call
The basic difference between a hedge fund and a private equity fund is, a hedge fund is an offshore investment fund by private limited companies and investors in private funds are not more than 100. The amount invested in private funds is also large than a hedge fund. The member investors have a substantial amount of assets invested outside of these private funds.
The sectors in which private fund investment can be made are energy, mining, stocks, mutual bonds etc. There comes a whopping amount of money in mining investment funds.
- Briefing the history, 74 funds were raised worth $60 billion in 2016 for investment in natural resources. In 2017 the number increased to 252 amounting $105 billion and is likely to be increased by $5.9 billion this year.
- The biggest mining focused fundraising is done by the market of China. It is seeking $3 billion while in future, the U.S. based energy and the mineral group are looking for $4 billion in funds.
- Investing in mining can be a roller-coaster ride. There are no assured returns. According to the latest survey, the top 5 private funds raised for mining are as follows,
- Resource capital funds in Denver, U.S. It raised $3.1 billion
- Orion resource partner in New York. It raised $2.0 billion.
- Waterton global resource management in Toronto, Canada. It raised $1.9 billion
- EMR capital in Grand Cayman. It raised $1.3 billion
- The sentient group in Grand Cayman. It raised $1.3 billion
- Diversified funds which have $12.3 billion will also make its way to natural resource funding and this money will flow to mining funds.
- 1228 funds were raised amounting to $602 billion in 2016 and the total estimate has reached to $4.5 trillion in mining investment funds.
- According to the new record by private capital tracker pre-qin, “may be an indication that although fund manager is securing new capital commitments, they are finding it more difficult keeping this capital to work in the current environment.”
Coming days are the golden days for mining investment funds as the natural resources are on the verge of extinction so prices will obviously rise.
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