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Kinterra closes oversubscribed debut critical minerals PE fund with $565m

Thursday, November 23, 2023
Opalesque Industry Update - Kinterra Capital, a private equity firm based in Ontario, Canada, has closed its debut fund, the Kinterra Battery Metals Mining Fund, LP, with committed capital of US$565m, surpassing its US$500m target. The fund invests in and develops key critical minerals assets and strategic infrastructure necessary for the energy transition.

Co-founders and co-managing partners Cheryl Brandon and Kamal Toor have a 15-year track record in private equity, having previously invested together in Kinterra's target sectors across more than 40 transactions.

"The structural underinvestment in critical minerals over the past decade has resulted in severely discounted valuations for excellent assets and created a massive need for capital investment, as countries transition to more sustainable energy sources," said Brandon. "Kinterra addresses that need by bringing the right combination of active management, financial resources, deep sector knowledge, and cross-functional technical expertise required to identify and develop assets across the value chain."

According to McKinsey, investments in mining, refining, and smelting will need to increase from approximately $3 to $4 trillion by 2030 to "bridge the great raw material disconnect" set to arise from the energy transition.

"Kinterra plays a role in the Western World's generational energy transition by identifying assets that address the 'energy trilemma': securing key critical mineral supply to meet the expanding demand, from diversified sources in stable jurisdictions, in a socially responsible fashion," said Toor. "Our strategy is supported by strong secular tailwinds, including robust and fundamental downstream demand, global net-zero efforts, and strategic government initiatives that support the repatriation of materials supply chains."

Kinterra targets asset-level investments in stable jurisdictions-primarily in North America, Western Europe, and Australia-that both source critical minerals and process them into chemicals required for EV batteries and other end products like energy storage solutions and renewable technologies.

Full press release here.

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