RCF Private Credit
The post carbon world starts with responsibly mined metals
The post carbon world starts with responsibly mined metals
Overview
The RCF Private Credit Strategy is founded on the belief that responsible mining is essential for global decarbonization efforts and $2 trillion of new capital is needed to support the global energy transition. Strong demand from energy transition underpins long term positive price trends for specific transitional metals, and a lack of public equity and institutional debt appetite presents an opportunity for alternative credit. The RCF Private Credit Strategy seeks to invest in producing mining and midstream companies and in de-risked, feasibility stage, construction ready, fully permitted counterparties in established mining jurisdictions with an objective of generating attractive risk-adjusted returns and yields.
Relied on globally for mine finance
Investment Highlights
Transition metals focus
- Public and private companies in the small to mid-cap mining and metals processing sector
- Financing growth capital for companies with revenues and cashflow; development capital for pre-revenue companies; and special situations, including existing debt
- Focus on producing mines; permitted, construction-ready projects; and mid-stream processing
Downside protection
- Secured lending with collateral over hard assets, in secure jurisdictions
- Investing across the capital structure with a focus on senior secured positions
- Loan amortization provides a built-in exit for RCF (i.e., no risk of ‘stranded’ investments)
Risk-controlled, early lending
- Free cashflow-based lending, based on conservative commodity price assumptions
- Floating rate coupons removing base rate risk
- Typical facility tenors of ~6 years, with likelihood of earlier repayment and improved IRR due to refinancings after 2-3 years
The critical experience to deliver
Meet the Team
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This information is intended as a general introduction to Resource Capital Funds Private Credit (“RCF Credit”), a new investment strategy under the RCF Management L.L.C. brand (together with its affiliates and funds, “RCF”).
RCF Credit is not yet an established legal partnership but instead represents an investment strategy. There is no assurance that a fund will be created, and that if created, the fund’s investment objective will be achieved or that the strategies described herein will be successful.
This is not an offer or solicitation with respect to the purchase or sale of any security.