Resource Capital Funds via its Resource Capital Fund VI L.P. (RCF VI) recently executed a share purchase deed to sell Ausenco to US investment firms Eldridge, Brightstar Capital Partners, and Claure Group.
Ausenco is a global engineering and consulting firm servicing the mining and oil and gas sectors.
This is Resource Capital Funds’ second investment in Ausenco. Resource Capital Fund II L.P. supported Ausenco in 2002 and subsequently sold out of the company in 2006 upon its listing on the Australian Securities Exchange (ASX).
The engineering firm was privatised from the ASX in 2016 in a deal that valued Ausenco at $150 million.
The latest transaction is expected to close in late 2023.
RCF VI was advised by King & Wood Mallesons (in Australia), KPMG (globally), Davis Graham & Stubbs (in the US), Blake Cassels & Graydon (in Canada), and Philippi Prietocarrizosa Ferrero DU & Uría S.A.S. (in Chile).
Resource Capital Funds, which is a private equity firm specialising in mining and mining innovation headquartered in Denver, Colorado, says Ausenco has been an integral part of its portfolio.
During RCF VI’s ownership, Ausenco focused on delivering copper for the energy transition, constructing four major copper concentrators. These include OZ Minerals’ (ASX:OZL) Carrapateena mine, representing one of the largest copper reserves in Australia, Constancia and Mina Justa in Peru and Mantoverde in Chile, still under construction, for a combined annual copper capacity of more than 400,000 tonnes.
In addition to copper, Ausenco has grown capabilities in sustainability, lithium, and operational performance. The company now has more than 3,000 employees, up almost 1,600 employees since RCF privatised the business.
Managing Partner for Resource Capital Funds James McClements says the firm believes its investment in Ausenco displays the strength and differentiation of its investment strategy, which selectively seeks long-term investments in mining businesses, while generating strong and consistent returns.
“Ausenco’s innovative culture aligned well with Resource Capital Funds, and the benefits of our relationship cannot be measured purely in financial terms“
“Ausenco’s innovative culture aligned well with Resource Capital Funds, and the benefits of our relationship cannot be measured purely in financial terms. This is a fantastic outcome for all parties involved, and we wish Ausenco continued success.”
Martin Valdes, Head of Private Equity for Resource Capital Funds, adds the transaction is a natural step and marks the next chapter in Ausenco’s journey.
“The decision to sell Ausenco was made after careful consideration, with the belief that this transition will allow the company to further expand its reach and make an even greater impact in the growing engineering sector. Our relationship will continue as like-minded collaborators to deliver the necessary commodities to support the energy transition.”
Meanwhile, Brett Beatty, Partner, Managing Director Australia, Resource Capital Funds will be joining a keynote panel discussion on day one of the upcoming International Mining and Resources Conference (IMARC) held in Sydney from 31 October to 2 November, of which Mining.com.au is an official media partner.
Beatty will be part of the discussion evaluating the next steps for industry in achieving the global energy transition, with a practical outlook for the supply of critical minerals.
Resource Capital Funds is a mining-focused, global alternative investment firm touted as a firm to pioneer the private equity mining investment space 25 years ago, partnering with investors and mining firms to build strong, successful, and sustainable businesses that strive to produce superior returns to all stakeholders
Since inception in 1998, Resource Capital Funds has supported more than 220 mining companies, with projects located in more than 50 countries and more than 30 commodities.
It has committed capital of US$2.5 billion.
Write to Adam Orlando at Mining.com.au
Images: OZ Minerals
