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Landmark downsizes metals and mining direct secondaries deal

The Simsbury, Connecticut-based private equity firm is branching out into metals and mining investments in a direct secondaries deal.

Landmark Partners has reduced the size of its direct secondaries deal with Canadian investment firm Aberdeen International as Landmark pursues metals and mining exploration investments.

The private equity and real estate secondaries firm has agreed to purchase a portfolio of public and private equity holdings from Aberdeen in a deal worth CAD$11.8 million ($9 million; €8.2 million), according to a statement released by Aberdeen. The deal was announced in September last year, when Landmark entered into an agreement to purchase assets worth CAD$29 million, and was expected to close in October 2014, Secondaries Investor previously reported.

“We view this as an opportunity to work with a leading global natural resources investor, and look forward to expanding our partnership with Aberdeen as we continue to grow our real assets investment platform,” Michael Carrano, a director at Landmark, said in the statement.

It wasn’t clear why the size of the deal was reduced. A spokeswoman for Landmark declined to comment further on the deal.

Aberdeen had investments in 40 public and private companies as of 30 April this year, totaling CAD$37.5 million, according to its first quarter earnings report. As part of the deal, Landmark will acquire Aberdeen’s shares in Tahoe Resources, a publicly-traded Canadian precious metals miner.

Landmark will buy the assets through Ore Acquisition Partners, an investment vehicle it formed after the deal was announced, and will pay CAD$8.1 million for the current portfolio holdings and a follow-on payment when the Tahoe shares are sold, Rob Hopkins, a spokesperson for Aberdeen told Secondaries Investor.

Aberdeen, which will provide management services to the partnership, will receive a CAD$2 million performance bonus from Landmark on the completion of additional milestones relating to the management of the holdings, he said.

Other portfolio companies held by Aberdeen include South African coal producer Buffalo Coal, Canadian and Russian silver miner Silver Bear Resources and leading Mongolian copper miner Xanadu Mines, though Hopkins wasn’t able to specify which company interests other than Tahoe’s are to be transferred to Landmark.

The deal is expected to close by the end of August 2015, according to the statement.

Simbsbury, Connecticut-based Landmark closed its latest real estate secondaries fund at $1.6 billion in May, smashing its $1 billion target.