AsiaNet 87526

LONDON, Jan. 11, 2021 /PRNewswire=KYODO JBN/ --

Highlights

- Fund II oversubscribed reaching $775m hard cap bringing total under

management to over $1.2 billion  

- Strong investor interest reflects demand for hard assets and green

commodities exposure  

- Provides exposure to copper, nickel and other base and industrial metals with

a precious metals hedge  

- 40% already deployed using Appian's world class global sourcing and execution

capabilities  

- Builds on Appian's record of generating strong risk adjusted returns by

identifying, acquiring and developing undervalued metals and mining assets  

- Majority of fundraising completed remotely through COVID-19 pandemic

- Team expanded to 37 investment professionals across locations in London,

Toronto, Lima, Belo Horizonte and Sydney, overseeing nearly 5,000 employees

across the portfolio

Appian Capital Advisory LLP ("Appian" or the "Company"), the investment advisor

to long-term value focused private equity funds that invest solely in mining

and mining related companies, today announces the final close of its second

fund ("Fund II"). Fund II was oversubscribed and reached its hard cap of $775m

following strong support from both new and existing Tier 1 investors globally.

Focus on core growth commodities

Fund II will pursue the same proven strategy as Appian's first fund ("Fund I"),

focusing on investments in metals and mining assets. Appian targets

medium-sized assets, prioritising profitability over scale to generate maximum

returns, with Fund II well positioned to benefit from demographic trends,

economic growth and action against climate change.

These include the commodities used in batteries, electric vehicles and

renewable power systems including copper and nickel. The Company will also

employ investments in precious metals as a potential portfolio hedge.

Fund II will invest on a global basis, targeting assets in jurisdictions with

proven geology, supportive governments and a robust legal framework including

Brazil, Australia, Mexico, Peru, Chile and Canada, where Appian has existing

operations.

Fund II is already 40% deployed or reserved in five investments, demonstrating

Appian's strong global sourcing and execution capabilities. These include

equity investments in Mineração Vale Verde's copper-gold development asset in

Brazil and Kalbar Operations' Fingerboards mineral sands project in Australia

(which is currently at the development stage); a royalty investment in Atlantic

Nickel's operating Santa Rita nickel-copper-cobalt asset in Brazil; and both

royalty and credit investments in Harte Gold's producing Sugar Zone mine in

Ontario, Canada.

Additionally, Fund II has significant capital available to pursue larger

co-investment opportunities.

The financial and operational expertise to deliver returns

Appian has a unique strategy that delivers outsized returns in the mining

sector and limits downside risk. As a specialist private capital provider, it

applies long-term value investing principles to a cyclical industry and remains

highly disciplined, focusing on high margin, low cost assets with a

high-quality resource base where there is the potential to add value.

The Company's unique in-house technical and investment expertise allow it to

identify undervalued opportunities in the sector. The financial team has

experience from leading investment banks and private equity firms, having

completed over $200 billion of mining transactions, while the technical team is

comprised of industry professionals from major mining companies who have

brought over 60+ mines into production. This allows us to apply the technical

sophistication of a major mining house to smaller operations, reducing

development and operating costs and bringing forward production to boost

returns.

Appian's strong culture of accountability allows it to maintain the highest

environmental, social and governance standards across all operations and

investments, and the Company has established a Charitable Foundation to support

the regions in which its operations are based. Appian has a strong Advisory

Board comprised of leading individuals from the mining, financial and

commercial sectors.

Strong track record

Following the success of Fund I and the investments already made from Fund II,

Appian's portfolio is well diversified. It invests in equity, credit and

royalties across the capital structure, and importantly where its industry

leading technical and financial teams are able to assist the underlying

management teams to create value.

Appian has an excellent track record with very strong risk-adjusted returns

delivered to date. It has made nine investments, with six mines in production

and a further two expected to be producing within 24 months. The Company has

also completed or announced four successful exits, including Avanco Resources

which owns one of the highest grade open-pit copper mines and was sold to Oz

Minerals.

Michael W. Scherb, Founder and CEO of Appian, commented:

"We are incredibly pleased to have closed Fund II, reaching our hard cap with

the fund oversubscribed, and appreciate the support for our unique operating

model and investment approach. Our Tier 1 investors value our combination of

technical and financial expertise that allows us to identify, acquire and

develop undervalued assets. Meanwhile, our management teams benefit from our

long-term capital and support in enhancing their development plans to boost

returns. Fund II is well positioned to benefit from its exposure to high growth

segments of the global economy, through commodities that will enable the

transition to a low carbon economy and infrastructure development to generate

strong, risk-adjusted returns."

About Appian Capital Advisory LLP

Appian Capital Advisory LLP is the investment advisor to long-term value

focused private equity funds that invest solely in mining and mining related

companies.

Appian is a leading investment advisor in the metals and mining industry, with

global experience across South America, North America, Australia and Africa and

a successful track record of supporting companies to achieve their development

targets, with a global operating portfolio overseeing nearly 5,000 employees.

Appian has a global team of 37 investment professionals with offices in London,

Toronto, Lima, Belo Horizonte and Sydney.

For more information please visit www.appiancapitaladvisory.com, or find us on

LinkedIn [https://www.linkedin.com/company/appian-capital-advisory-llp/] or

Instagram [https://www.instagram.com/appiancapitaladvisory/?hl=en].

Source: Appian Capital Advisory LLP