Private equity funds were increasingly looking at the mining and metals market for possible investment, advisory firm Ernst & Young (E&Y) Australia and Asia-Pacific mining and metals transaction leader Paul Murphy said.<\/p>\n
\u201cThere is increasing interest in mining and metals from private equity funds, other specialist funds and sovereign wealth funds and we see this trend continuing into 2013,\u201d Murphy said this week, which was despite the challenging market conditions facing junior and midtier miners.<\/p>\n
\u201cPrivate capital is increasingly looking to take advantage of low equity valuations to take opportunistic or strategic noncontrolling equity stakes in mining and metals assets at what they perceive as an opportunistic time in the cycle.\u201d<\/p>\n
Murphy said preliminary analysis by E&Y suggested that private capital investors accounted for 21% of mining mergers and acquisitions (M&A) globally in the nine months to September 2012 compared with just 12% for the same period in 2011.<\/p>\n
He noted that, typically, financial investors were seeking \u201ctoehold\u201d investments of between 10% and 15% that could mitigate risk with a combination of debt and equity. Convertible debt had also been a popular financial instrument for the sector in Australia, which Murphy said exhibited the characteristics of both.<\/p>\n
Furthermore, State-owned enterprises were increasingly adopting a larger \u201cfoothold\u201d investment strategy with the ultimate objective of securing longer-term strategic supply.<\/p>\n","protected":false},"excerpt":{"rendered":"
Private equity funds were increasingly looking at the m […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-629","post","type-post","status-publish","format-standard","hentry","category-industry-news"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/w3.crusherinc.com\/News\/wp-json\/wp\/v2\/posts\/629","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/w3.crusherinc.com\/News\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/w3.crusherinc.com\/News\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/w3.crusherinc.com\/News\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/w3.crusherinc.com\/News\/wp-json\/wp\/v2\/comments?post=629"}],"version-history":[{"count":0,"href":"https:\/\/w3.crusherinc.com\/News\/wp-json\/wp\/v2\/posts\/629\/revisions"}],"wp:attachment":[{"href":"https:\/\/w3.crusherinc.com\/News\/wp-json\/wp\/v2\/media?parent=629"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/w3.crusherinc.com\/News\/wp-json\/wp\/v2\/categories?post=629"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/w3.crusherinc.com\/News\/wp-json\/wp\/v2\/tags?post=629"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}