Egyptian Billionaire Naguib Sawiris To Launch $1.4 Billion Gold Mining Fund
According to a statement by La Mancha Holding, chaired by Sawiris, the $1.4 billion fund will be a long-only, deep-value fund primarily focused on gold mining.
Naguib Sawiris has said that creating a fund is the natural step after La Mancha vended-in its operational assets into Evolution Mining and Endeavour Mining in 2015. The fund will include La Mancha’s gold mining assets in Endeavour Mining, Evolution Mining, Altus Strategies, and Golden Star. The fund, which will be advised by La Mancha Capital Advisory LLP, will also involve a $100 million investment from a strategic partner who is yet to be named.
The primary investment goal of the fund is to provide exposure to the gold and precious metals mining sector. However, the fund will also be able to invest in EV battery metals. Its investment will mostly focus on a concentrated portfolio of long-only listed equities. The fund will push to acquire significant stakes in junior mineral resource companies which it believes to have robust managerial and geological potential as the company implements a three-to-five-year value creation strategy.
Both La Mancha and LMCA believe that profitability and environmental, social, and governance (ESG) performance go hand in hand in the mining sector and, as such, will work to improve ESG metrics within its portfolio companies throughout its investment tenure.
The fund is owned by Egypt’s billionaire Sawiris family, who built their fortune in telecoms, mining, and real estate. Naguib Sawiris is estimated to have a net worth of $3.1 billion.