10 August 2020

Carey Olsen supports Tembo Capital on latest mining fund launch

Carey Olsen's corporate team in Guernsey has advised Tembo Capital (Tembo) on the launch of its latest fund, Tembo Capital Mining Fund III (Tembo Fund III), which has a fundraising target of US$300 million.

A Guernsey closed-ended investment scheme, Tembo Fund III will follow a similar investment strategy as Tembo's first two funds and invest in high quality, undervalued assets owned by mid-tier and junior mining companies. These opportunities may include exploration ventures, near term production ventures, royalties, operating mines, infrastructure of metals and mining projects, and services associated with the metals and mining sector.

Working alongside onshore counsel Macfarlanes, the Carey Olsen team advising Tembo on all Guernsey-related corporate and regulatory aspects of the fund's launch and initial fundraising was led by partner Ben Morgan, assisted by senior associate Alex Mauger.

Ben said: "Having advised Tembo on its first two fund launches, Carey Olsen is pleased to have seen the firm go from strength to strength and to be supporting Tembo again on its latest fund. The commitments already secured demonstrate both the confidence in Tembo as an investor in the mining industry and its market leading position."

Since inception, Tembo has invested more than US$240 million of equity capital in 13 mining companies. Tembo has also raised and invested an additional US$20 million of co-investment equity capital. To date, Tembo has realised US$175 million and distributed US$ 165 million, generating a combined gross realised internal rate of return of 28% and a gross multiple of invested capital of 2.3x.