Private equity group EMR Capital founded by Owen Hegarty has secured $450m ($449m) of commitments to close a specialist mining fund.

The new mining fund has drawn interest from a mix of institutions, endowments and private investors, and will focus on copper, gold, coking coal and potash.

EMR Capital CEO Jason Chang told Reuters: "We think now is a good time to deploy capital into these markets."

"According to the group, more private equities are replacing public capital raisings due to a slump in commodity prices."

EMR Capital said it is looking at the medium to long-term and not concerned about daily fluctuations. According to the group, more private equities are replacing public capital raisings due to a slump in commodity prices.

The $2.5tn private equity industry is dominated by big name funds unrelated to mining, which is perceived as risky.

The mining sector is said to have increased by 30%, with the non-mining sector rising by more than 25%, making it difficult for mining companies to tap into public markets during this time.

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More private equity is expected to be invested in mining activities due to these reasons.

The new fund secured by EMR Capital initially had a target of $400m and is set to avoid investments in iron ore. Last year, iron ore prices tumbled by more than 50% and supply is dominated by a small handful of miners.

"Iron ore is probably too much of a niche market," Chang added.