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Laxman Pai, Opalesque Asia:

Funds within the natural resources asset class are seeking to raise a record five-year high of $215bn, a study revealed.

According to the Q2 2021 Natural Resources Quarterly Report published by Preqin, this equals the previous high of $215bn recorded in Q1 of 2020, whilst the number of natural resources funds in the market reached a record-breaking high of 411.

Both the aggregate capital targeted and the number of funds in the market are up 6% and 7% respectively on Q1 2021, it said.

Meanwhile, unlisted natural resources AUM grows 12% over the year to $944bn as of December 2020.

The majority (203) of funds in the market are focused on North America, representing an increase of 23 funds from the previous quarter and 53% of investors plan to target investments in North America in the next 12 months, up 47% on the same time last year.

Investors are looking to make larger commitments to natural resources, with almost a quarter (23%) planning to commit $300m or more in Q2 2021, in stark contrast to the same quarter last year where no investors planned to do so.

Natural resources funds focusing on energy investments accounted for 96% of aggregate capital raised in Q2 2021, with four of the five largest funds closed including renewable energy in their investment mandate.

However, the report also found that natural resources fundraising declined for the second consecutive quarter. Only 25 funds were closed with $18bn of aggregate c......................

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