Brisbane, Queensland, September 22, 2023 – Resource Capital Funds, a leading private equity firm specialising in mining and mining innovation and headquartered in Denver, Colorado, is pleased to announce its fund Resource Capital Fund VI L.P. (“RCF VI”) has executed a Share Purchase Deed to sell Ausenco Pty. Ltd. to US investment firms Eldridge, Brightstar Capital Partners (“Brightstar”), and Claure Group.
Global engineering firm, Ausenco has been an integral part of the RCF VI portfolio, since the original investment in December 2014, and subsequent privatisation from the Australian Securities Exchange in 2016 in a deal that valued Ausenco at A$150 million. Resource Capital Funds is immensely proud of the transformation and progress Ausenco has achieved during RCF VI’s ownership. Resource Capital Funds has provided unwavering sponsorship and financial support to Ausenco, particularly during challenging periods in the mining sector.
During RCF VI’s ownership, Ausenco has focused on delivering copper for the energy transition, constructing four major copper concentrators. These include Carrapateena, representing one of the largest copper reserves in Australia, Constancia and Mina Justa in Peru and Mantoverde in Chile, still under construction, for a combined annual copper capacity of more than 400,000 tonnes. In addition to copper, Ausenco has grown capabilities in sustainability, lithium and operational performance. Ausenco now has more than 3,000 employees, up almost 1,600 employees since RCF privatised the business in 2016.
James McClements, Managing Partner for Resource Capital Funds noted, “We extend our heartfelt gratitude to the Ausenco team, whose dedication and unwavering commitment have been the driving force behind its success during our ownership.”
“We believe our investment in Ausenco clearly displays the strength and differentiation of our investment strategy, which selectively seeks long-term investments in mining businesses we can help grow, while generating strong and consistent returns along the way. Ausenco’s innovative culture aligned well with Resource Capital Funds, and the benefits of our relationship cannot be measured purely in financial terms. This is a fantastic outcome for all parties involved, and we wish Ausenco continued success” – Mr. McClements added.
Martin Valdes, Head of Private Equity for Resource Capital Funds, noted “Over the last 9 years, we have been very proud to work with the Ausenco team to create a leading engineering company, participating in its success and growth. This transaction is a natural step and marks the next chapter in Ausenco’s journey, confident that the company is well-prepared to embark on its next phase of growth. The decision to sell Ausenco was made after careful consideration, with the belief that this transition will allow the company to further expand its reach and make an even greater impact in the growing engineering sector. Our relationship will continue as like-minded collaborators to deliver the necessary commodities to support the energy transition.”
Zimi Meka, CEO of Ausenco added, “I’d like to thank RCF for their support over the last 9 years which allowed the company to grow and develop into one of the world’s leading service providers to the mining and metals industry.”
Since inception in 1998, Resource Capital Funds has supported over 220 mining companies, with projects located in more than 50 countries and more than 30 commodities. Resource Capital Funds has committed capital of US$2.5 billion. This is our second successful investment in Ausenco. Resource Capital Fund II L.P. supported Ausenco in 2002 and subsequently sold out of Ausenco in 2006 upon its public listing on the Australian Securities Exchange.
The transaction is expected to close in late 2023, subject to satisfaction of customary closing conditions. RCF VI was advised by King & Wood Mallesons (in Australia), KPMG (Globally), Davis Graham & Stubbs (in the United States), Blake Cassels & Graydon (in Canada) and Philippi Prietocarrizosa Ferrero DU & Uría S.A.S. (in Chile).
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About Resource Capital Funds (RCF)
RCF is a pioneer in the mining-focused alternative investment space partnering with companies to build strong, successful, innovative, and sustainable businesses that strive to produce superior returns to all stakeholders. RCF offers distinct investment strategies across the risk/return spectrum aimed at providing capital throughout the development and capital structure risk spectrum. Mining is an essential global industry for the world today and the world of the future. Everything society needs is either grown or mined. With paradigm shifts in demand driven by decarbonization, emerging middle- income growth, and other global factors, RCF has the investment experience, technical & ESG knowledge, commercial experience, and global networks necessary to invest across all commodity cycles. www.resourcecapitalfunds.com
Ausenco is a global company redefining what’s possible. The team is based across 26 offices in 15 countries delivering services worldwide. Combining deep technical expertise with a 30-year track record, Ausenco delivers innovative, value-add consulting studies, project delivery, asset operations and maintenance solutions to the minerals and metals and industrial sectors. www.ausenco.com
Eldridge invests in businesses across the Insurance, Asset Management, Technology, Mobility, Sports & Gaming, Media & Music, Real Estate, and Consumer landscapes. The firm seeks to build and grow businesses led by proven management teams that have demonstrated leadership and experience to scale an enterprise. Eldridge is headquartered in Greenwich, Connecticut, with additional offices across the United States and in London. www.eldridge.com
Brightstar Capital Partners is a middle market private equity firm focused on investing in closely held family, founder, or entrepreneur-led businesses where Brightstar believes it can drive significant value with respect to the management, operations, and strategic direction of the business. Brightstar employs an operationally intensive “Us & Us” approach that leverages its extensive experience and relationship network to help companies reach their full potential. www.brightstarcp.com
About Claure Group
Claure Group is a multi-billion-dollar global investment firm spanning multiple high growth sectors including tech, telecom, media, real estate, essential minerals, and sports, led by Marcelo Claure. Notable investments include T-Mobile, where Claure is the largest individual shareholder; SHEIN, the global #1 on-demand fashion company in the world; Bicycle Capital, a Latin America focused growth equity fund; and Brightstar Capital Partners, a leading U.S. middle market private equity firm.
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