La Mancha has launched a $1.4bn fund to explore new opportunities in the industry, primarily involving gold mining projects.
Owned by Egyptian billionaire Naguib Sawiris, the investment firm’s new vehicle will be named La Mancha Fund SCSp and advised by La Mancha Capital Advisory (LMCA).
The gold mining vehicle, which is open to new investors, will also invest in battery metals needed for electric vehicles.
La Mancha, a precious metal mining-focused investment firm, said that the fund has completed its first closing with the receipt of La Mancha’s gold mining assets.
These include a 19.1% stake in Endeavour Mining, 33.4% interest in Golden Star and 35.1% stake in Altus Strategies.
Additionally, the fund received a $100m investment from an undisclosed strategic partner, which is now investing alongside the Sawiris family.
La Mancha board of managers chairman Naguib Sawiris said: “Creating a fund is the natural consequence of what we have been doing since we vended-in our operational assets into Evolution and Endeavour in 2015.
“Transitioning to a fund structure and welcoming new investors is timely when we are seeing opportunities in a gold mining sector which is fragmented and needs further consolidation.”
The new investment vehicle’s primary objective is to provide exposure to the gold and precious metals mining sector.
In a press statement, La Mancha said: “The Fund will invest primarily in a concentrated portfolio of long-only listed equities but may also consider investing a small proportion of its assets in private equity holdings.”
The Fund intends to acquire significant stakes in junior mineral resource companies with strong managerial and geological potential, with an aim to improve operational efficiency.
It will also assist the miners in unlocking organic growth as well as support accretive external growth opportunities.
“As part of its mandate, the Fund will seek to improve environmental, social and corporate governance (ESG) metrics within its portfolio companies during its investment tenure, as La Mancha and LMCA believe that profitability and ESG performance are strongly inter-related within the mining sector,” the press statement continued.