Kinterra Capital Closes $950M Fund for Critical Materials

- The firm focuses on "control-oriented investments" in late-stage development projects located in geopolitically stable regions like North America and Australia. This strategy aims to secure Western supply chains and reduce dependence on foreign suppliers for materials crucial to power grids, manufacturing, and technology. - Kinterra's first fund, which closed in November 2023, raised $565 million against a $500 million target. Through that fund, Kinterra became the second-largest holder of development-stage copper assets in the United States. - Co-founders and Co-Managing Partners Cheryl Brandon and Kamal Toor have a long history of working together, with over 20 years of experience and having led private equity funds that have raised over $3.5 billion. Before Kinterra, they were founding partners at another mining-focused private equity fund. - The new fund will primarily target minerals such as copper, nickel, cobalt, graphite, lithium, and manganese, which are essential for electric vehicle batteries and other energy transition technologies. The growing demand from AI, which requires extensive data centers and battery energy storage, is also a key driver for these minerals. - With its first acquisition from Fund II, the Antler Copper Project in Arizona, Kinterra now controls approximately 14 billion pounds of copper resources in the U.S. The firm's first fund also made significant copper investments, including the Pumpkin Hollow mine in Nevada and a majority stake in the White Pine Copper project. - The firm's strategy is to acquire assets at attractive entry points, often arising from distress or strategic repositioning, and then apply technical and transactional expertise to increase the asset's value and valuation multiple. - Investors in Kinterra's funds include a mix of endowments, foundations, public and private pension plans, and family offices. The Virginia Retirement System committed $100 million to Fund II.