Sun, Dec 15, 2019
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

The unlisted natural resources market remains very crowded as managers bring new funds to market

Monday, July 15, 2019

Laxman Pai, Opalesque Asia:

The unlisted natural resources market remains very crowded, with managers bringing new funds to market more quickly than they are being closed.

At the start of Q3 2019 there are 307 funds seeking a total of $208bn from investors - figures very similar to the first quarter of this year, said Preqin quarterly update on the natural resources.

Of these, half (150) have held at least one interim close, securing a combined $76bn - just 36% of the total capital sought.

By region, these funds are quite diverse. The largest proportion is focused on investment in North America, as in other private capital asset classes, but Europe and Rest of World-focused funds are broadly level.

This reflects the large natural resources markets that exist in areas like Australia and Brazil. By contrast, just 19 funds are in market targeting Asia, a small total for such a large and varied region.

Energy-focused funds dominate the market, accounting for 69% of funds on the road and 86% ($179bn) of the total capital sought.

No other strategy is targeting more than $10bn in total, illustrating the extent to which the natural resources market is tilted towards energy products. It seems unlikely that any other strategy will see significant interest or activity in the coming months and years.

Based on fund searches and mandates issued by investors in Q2 2019, the vast majority (88%) of natural resources investors are planning to commit capi......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. 50 South Capital & Preqin highlight emerging manager outperformance in a new report[more]

    Bailey McCann, Opalesque New York for New Managers: New data from Preqin and 50 South Capital, the investment arm of Northern Trust, shows that emerging managers are outperforming established managers by almost 4% a

  2. An academic wrecking ball aims at hedge funds[more]

    From Bloomberg: Quant investing, and indeed much of the hedge fund industry, is built on the power and freedom that come with the ability to sell short. When you short a security (borrow and then sell it, meaning you make money if the price falls and you then re-buy it), you can profit when markets

  3. PE/VC: Private equity buys $101bn of European businesses, 30 under 30 venture capital 2020: Meet the young investors backing tech's next big thing[more]

    Private equity buys $101bn of European businesses From Bloomberg: European equities' cheap valuations have turned the region into a honeypot for private-equity and arbitrage funds looking to reap double-digit returns. With the buyout firms enjoying a massive amount of dry powder, especial

  4. PE/VC: The truth about private equity fund size, US VC investment in female founders hits all-time high[more]

    The truth about private equity fund size From Institutional Investor: As the end of the year approaches, institutional investors in private markets are wrapping up work on the last few funds we need to invest in to hit our targeted annual commitment levels. You see, private equity

  5. Crypto: Almost 70 crypto hedge funds have closed this year as institutional investors shy away, Central bank talk of launching cryptocurrencies is all bluff, Thailand and Hong Kong in crypto collaboration with cross border token project, Crypto loans see solid growth, platforms attract community interest, A Bitcoiner in the Senate? Is Bakkt CEO in US govt. good or bad for crypto?, Bank of France to test digital currency in 2020[more]

    Almost 70 crypto hedge funds have closed this year as institutional investors shy away From The Block Crypto: Nearly 70 crypto-focused hedge funds that largely cater to institutional investors, such as pension funds and family offices, have closed this year. The number of new fund