Sprott, Woori win Korean mandate for $750m global resources fund
South Korea’s National Pension Service (NPS) will lead a consortium of institutional investors in putting up half the capital for a $750 million private equity fund to be managed by Canadian asset manager Sprott and Woori Asset Management. The 10-year fund will invest in the global natural resources and power sectors.
The other $375 million has been committed by state-owned Korean Electrical Power Company (KEPCO), the country's largest electric utility. The transaction is expected to be completed in the first quarter of 2014, pending registration of the fund with the Korean Financial Supervisory Service.
"We are pleased to have been awarded this mandate from one of the top pension funds in the world and look forward to partnering with NPS, KEPCO and Woori to make the Fund a success," said Peter Grosskopf, Sprott's CEO, in a statement. "Following our launch of an offshore mining fund with Zijin Mining Group, this mandate marks Sprott's second entry into the growing Asian marketplace and solidifies our international reputation for expertise in natural resource investing."
Toronto-headquartered Sprott can trace its origins to brokerage Sprott Securities and currently manages approximately C$7 billion in assets through four businesses: asset management, physical bullion, private equity and debt, and wealth management. The private equity and debt strategies were developed to capitalize on the firm's natural resources expertise and provide investment options to wealth management and brokerage clients.
Sprott makes equity investments in areas such as oil and gas, agriculture and agricultural nutrients; operates a lending unit that provides financing to mining and oil and gas companies; and has a dedicated mezzanine business that offers debt-based solutions to companies involved in oil and gas exploration and development in Western Canada.
The joint venture fund with Zijin - China's largest gold producer and second-largest mined copper producer - was announced in September, with Zijin providing $100 million in seed capital to Sprott's $10 million towards an overall target of $500 million. It will primarily invest in publicly-listed equity and debt instruments of gold, other precious metals and copper mining companies.
In May, Sprott also established a joint venture with CITIC Private Equity for an offshore global resources fund.
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