Private equity firm Appian Capital Advisory has doubled its assets under management (AUM) with the completion of a US$2.06 billion capital raise for its latest fund.
The Fund III raise was heavily oversubscribed, according to Appian, despite ‘difficult’ fundraising conditions for the private equity sector. This third fund is Appian’s largest to date and brings its total AUM to around US$4 billion, not including a co-investment pool.
It’s more than double the amount Appian raised in its Fund II in 2021, which closed at US$775 million, and a far cry above the US$375 million raised in Fund I in 2014.
Fund III has already deployed a tenth of its capital over three investments: a joint venture with TSX-V-listed Osisko Metals (TSX-V:OM) to develop the Pine Point Zinc-Lead Project in Canada’s Northwest Territories; a partnership with Detronic Energia to develop 62.4-megawatt-peak (MWp) of solar power plants in Brazil; and the acquisition of a majority stake in the operating underground Rosh Pinah Zinc-Lead Mine in Namibia.
Appian has built its reputation by seeking savvy buyouts across the metals and mining sector, but the firm says it may dedicate up to one-third of the Fund III cash to credit opportunities in metals and mining adjacencies, reflecting a growing presence in this sector.
Appian Found and CEO Michael W. Scherb says the third fund received ‘very strong support’ from existing and new investors.
“Fund III provides exposure to key trends including inflation protection, the energy transition, and the need for an independent and stable supply of critical minerals to support the shift away from oil and gas.
As we continue to see increasing interest in metals and mining, Fund III will build on the successful track record of Funds I and II, deploying our unique operating model to bring mines into production and generate outsized returns for our investors.”
“As we continue to see increasing interest in metals and mining, Fund III will build on the successful track record of Funds I and II”
With the completion of Fund III, Appian now touts itself as the largest private equity investor in metals and mining on the planet.
The company says its investors have expressed ‘substantial interest’ in co-investments that could expand Fund III’s capabilities, highlighting the investor confidence in Appian and the fund.
Appian aims to bring to its investee businesses its technical knowledge, allowing it to partner with management teams to help improve development plans and bring mines into production.
The announcement follows comments made Appian Capital Advisory’s Senior Advisor Australia and Asia, Peter Nicholson, who told this news service the global fund is “very active in the market”.
Speaking to Mining.com.au on the sidelines of Mines and Money Connect Melbourne in June 2023, Nicholson said Appian remains on the lookout for solid investment opportunities and there are plenty of sound investments out there.
Capital is certainly available for mining companies to develop their assets, with debt generally easier to obtain than equity, as commercial banks pull away from the sector and become more risk-averse, he said at the time.
Write to Joshua Smith at Mining.com.au
Images: Appian/FGS Global
