As reported in multiple
IM articles, there has been an apparent increase in investment activity by PE in the industrial minerals sector over the past decade. To many in the sector, there is confusion about what exactly PE is, whether PE will continue to invest actively in the sector, where future investments might materialise, and if overall, PE investment is a positive or a negative for the industry.
When most people think PE, they think of leveraged buyout (LBO) type transactions. LBOs are where PE has its origins, and are investments that involve an investor taking control of a public or private corporation (typically through a 100% acquisition). LBOs are partially financed by debt - the ‘leverage’ in the transaction - which is assumed and repaid by the company that is being purchased.
PE funds - the individual pools of investment capital usually are referred to as ‘funds’ -...