21 January 2021

Carey Olsen supports Appian Capital on US$775 million launch of second mining fund

Carey Olsen's investment funds team in Jersey has advised Appian Capital Advisory (Appian) on the launch and final close of Appian Natural Resources Fund II (Fund II), the private equity manager's second fund focused on the mining sector.

Fund II, which has been established as a Jersey Expert Fund, was oversubscribed and reached its hard cap of US$775 million following strong support from both new and existing Tier 1 investors globally.

It will pursue the same proven strategy as Appian's first fund, focusing on global investments in metals and mining assets, particularly in jurisdictions with proven geology, supportive governments and a robust legal framework including Brazil, Australia, Mexico, Peru, Chile and Canada, where Appian has existing operations. Target commodities include those set to benefit from the growth in electric vehicles and renewable power systems, notably copper and nickel, with Fund II also employing precious metals investments as a potential portfolio hedge.

The Carey Olsen team acting for Appian advised on structuring, corporate, financing and regulatory aspects related to the fundraising effort. The Carey Olsen team was led by partner Robert Milner, with assistance from investment funds and corporate senior associate Arindam Madhuryya and financing senior associate Rose Clements.

Robert said: "We are delighted to have acted for long-standing client Appian in relation to the incredibly successful fundraise and launch of Fund II. The fact that it has secured commitments of US$775 million, which is more than double the US$375 million raised for its debut mining fund, speaks volumes for the reputation and excellent track record Appian has developed for itself within this growing sector." 

Fund II is already 40% deployed or reserved in five investments. These include equity investments in Mineração Vale Verde's copper-gold development asset in Brazil and Kalbar Operations' Fingerboards mineral sands project in Australia (which is currently at the development stage); a royalty investment in Atlantic Nickel's operating Santa Rita nickel-copper-cobalt asset in Brazil; and both royalty and credit investments in Harte Gold's producing Sugar Zone mine in Ontario, Canada.