Resource Capital Funds, the private-equity firm that has invested in mining projects since 1998, is seeking $1.75 billion for its next fund, according to a person familiar with the situation.
Resource Capital Fund VI LP will invest $10 million to about $200 million in public and private mining businesses, said the person, who asked not to be named because the fund is private. Fund VI, whose target would top the more than $1 billion its predecessor got in 2009, will invest globally in projects from post-exploration properties to producing assets.
Peter Nicholson, a partner at the firm, didn’t respond to an e-mail seeking comment.
The firm, based in Denver, has invested in 111 mining companies located in 38 countries and involving 27 commodities, according to its website. The prior fund is mostly unrealized, the person said. Resource Capital Fund V LP was producing a 27 percent internal rate of return as of May 31, according to data from University of Texas Investment Management Co.
Resource Capital Funds sold industrial minerals company Rolling Rock Minerals Inc. to a unit of S&B Industrial Minerals SA for $55.5 million in September. The firm in August agreed to the sale of portfolio company Talison Lithium Ltd., a producer of lithium ore, to Rockwood Holdings Inc. for about C$724 million ($739 million). Resource Capital held 37 percent of the company’s shares.
James McClements and Henderson Tuten co-founded the firm in 1998. They previously worked together at financial advisory firm Rothschild Group.