Appian's Fund III has formed a joint venture with Osisko Metals to develop the Pine Point zinc and lead project in Canada.
Despite a challenging fundraising landscape in the private equity sector, Appian Capital Advisory has secured substantial commitments for its third fund (Fund III), which is targeting midtier opportunities in energy transition commodities and precious metals.
An overwhelming response from new, major investors and existing top-tier backers led to the fund’s hard cap being raised to $2.06-billion.
“We are thrilled to have closed Fund III, with very strong support from existing and new investors,” said Appian founder and CEO Michael Scherb.
“Fund III provides exposure to key trends, including inflation protection, the energy transition and the need for an independent and stable supply of critical minerals to support the shift away from oil and gas,” said Scherb.
Fund III is Appian’s biggest fund to date, significantly boosting its total assets under management to about $4-billion. It will build on the successful track records of the first two funds. The $375-million Fund I closed in 2014 and the $775-million Fund II in 2021.
Fund III has already deployed 10% of its capital, securing three investments. These include a joint venture with TSX-V-listed Osisko Metals to develop the Pine Point zinc/lead project, in Northwest Territories, Canada; a partnership with Detronic Energia to develop 62.4 MWp of solar power plants in Brazil; and acquiring majority ownership of the operating underground Rosh Pinah zinc/lead mine, in Namibia.
Investors have also expressed interest in co-investments, Appian says, stating that it would significantly expand Fund III’s capabilities.