Denham Capital Sharpens Focus on Sustainable Infrastructure and Mining Investments Critical to the Energy Transition|
August 15, 2022 – Denham Capital Management LP (“Denham”) today announces an organizational change to advance its strategy of supplying capital in support of the global energy transition. Denham will lift out its Energy Resources related team and funds into a newly formed investment firm, Trace Capital Management. This will enable the firm to place its full attention on its energy transition focused Sustainable Infrastructure and Mining investment businesses, which deliver infrastructure and resources critical to the energy transition to global markets.
Stu Porter, Founder and CEO of Denham Capital said: “This change will allow our firm to focus its time and resources on becoming a preeminent investor in the global energy transition. Going forward, Denham will focus solely on supplying the critical materials, infrastructure and clean energy generation facilities to power the evolving green economy, while also fulfilling our rigorous ESG objectives and providing superior risk-adjusted returns to our investors in both equity and credit. At the same time, the formation of Trace Capital Management will allow that team to continue making energy resources investments critical to providing security of energy supply in a capital constrained environment.”
Denham’s existing Sustainable Infrastructure platform currently manages over $3 billion of commitments across its equity and credit investment platforms. It is ideally positioned to play a pivotal role in the global energy transition, helping combat the impact of the ongoing climate emergency whilst driving economic growth and delivering value for its partners. The Sustainable Infrastructure team has been investing in renewable power for over 15 years and has deep expertise in infrastructure “business building” where it acquires, grows and exits infrastructure businesses. The current portfolio consists of 12,800MW of assets, including wind, solar, hydro, efficient gas-fired generation and battery storage. The platform’s existing clean energy investments generate power across 11 countries, helping avoid an estimated 1.2 million tonnes of carbon emissions annually. Over the past two years, the team has further expanded its capabilities beyond power investments into broader sustainable infrastructure, reflecting the vast investable opportunity set which aligns with the global energy transition.
Denham’s existing Mining platform currently manages over $2 billion and supports management teams and projects in metals and minerals that also play a critical role in the energy and materials transition, including decarbonization of industry, enhanced supply chain security and the acceleration of society’s technological footprint. The current Mining portfolio includes eight producing and late-stage development assets in essential metals and minerals such as tin, copper and rare earths which provide crucial raw materials to enable the transition to the new green economy. These assets are expected to produce in excess of $1.1 billion per annum of EBITDA once at full run-rate production.
Consistent with its overarching strategy of supporting the global energy transition, Denham’s ESG Policy details the firm’s commitments to verifiable impacts on climate change, biodiversity, community engagement and health and safety. To qualify for consideration as a Denham investment, a project must first meet the firm’s rigorous ESG Policy screening criteria, and ESG is then integrated throughout the investment lifecycle. Denham Capital is a signatory to the United Nations-supported Principles for Responsible Investment (PRI) and Denham Sustainable Infrastructure was recently named “Best ESG Investment Fund: Energy Transition” at the ESG Investing Awards 2022.
The legacy Denham Energy Resources team, led by Jordan Marye, will lead and staff Trace Capital Management and continue to manage the $1.4 billion in existing investments and funds related to the Denham Energy Resources platform. Apart from Marye, Denham’s existing Partners, Stu Porter, Justin DeAngelis, Scott Mackin, Jorge Camina, Carl Tricoli, Bert Koth and Rob Still, will continue to manage Denham’s existing funds as well as to steer the firm’s growth towards a sustainable future.
Porter said: “Denham is proud to have created and fostered the Energy Resources investment platform and I look forward to remaining involved as a Trace Capital Partner, investor and contributor to its success.”
About Denham Founded in 2004, Denham Capital is a global Energy Transition investment firm, having raised more than $12 billion1 of capital across multiple sectors. Specializing in private equity, infrastructure and credit, we invest in sectors that are central to the economic and resource transitions happening globally. We deliver the metals and minerals and sustainable infrastructure needed for today and tomorrow. Denham Capital sponsors entrepreneurs, delivering the financial resources and industry expertise needed to create and grow successful infrastructure and resource businesses. We seek to establish long term partnerships with entrepreneurs and companies who share our vision for growth and value creation. Our investment teams have extensive renewable power, infrastructure and mining investment experience, including technical experience as engineers, operators, and business owners. Our firm is built on a foundation of experience, fairness, economic rationale, flexibility and trust, and we bring these values into every opportunity we pursue. We believe our tactical familiarity within our industry sectors along with a disciplined approach centered around fairness and shared success make us an ideal partner. For more information, visit denhamcapital.com.
Media Inquiries: Elizabeth Adams/ Oliver Mills, FTI Consulting – [email protected]
¹ Includes Funds not managed by Trace Capital Management