Peter Koven writes in the Financial Post, that private equity firms are raising funds to get involved in the mining sector.
Howard Burshtein, a partner at Baker & McKenzie LLP, said private equity firms could raise $10-billion to $15-billion for mining investments in 2013. That builds on the $8.5-billion that eight mining-focused funds raised in 2012. By comparison, Canadian miners are expected to raise roughly $2-billion on the equity markets this year, down from a five-year average of $9.3-billion.
It won’t be a permanent source of capital for the mining sector but its certainly a source of capital that is badly needed at present.