Money of Mine Mining Private Equity Unmasked (Fraser Perry)
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Dec 16, 2025 Fraser Perry, a mining private equity professional with a background in engineering and corporate development, shares his insights into the world of mining private equity. He explains what mining PE is and how it's structured, discussing the impact of fund mandates and investment stages. Fraser highlights the challenges of aligning fund life with commodity cycles, the rise of minority investments, and the changing competitive landscape. He also delves into fees, manager incentives, and the importance of operational improvements for adding value, providing a comprehensive overview of the field.
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Closed‑End Fund Timing Creates Pressure
- Private equity funds are typically closed-end with a 10-year life and concentrated portfolios of 5–10 investments.
- That fixed timeframe forces rapid deployment and makes timing exits in volatile commodity cycles very hard.
Growth Strategy Relies On Successful Build
- Growth strategies target development-stage projects to capture a re-rate as they de-risk and ramp up.
- Execution risk is high: construction, CapEx blowouts and ramp-up failures can destroy returns.
Consolidation And Turnarounds Win Low‑Risk Upside
- Value strategies include turnarounds, consolidation and roll-ups to extract operating synergies.
- These approaches can reduce execution risk versus pure greenfield construction.