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Mongolia’s first private equity fund receives ORIX Corp commitment

5 Feb 2013

gobi-mongolia_sqThe firm claiming to have created Mongolia’s first private equity fund has received a commitment to the vehicle from Japanese financial services group ORIX Corp.

Mongolia Opportunities Partners launched its Fund I vehicle in 2011 targeting high-growth sectors of the country’s economy, such as mining, infrastructure and export-related areas.

ORIX said it planned to use the fund as a vehicle for its first investment in Mongolia, which has recorded rocketing growth rates over the past couple of years thanks to its natural mineral wealth.

The country grew at 17.5 per cent in 2011 according to the IMF, which estimated that growth topped 12 per cent in 2012.

Mongolia Opportunities Fund I, which is targeting $50m, has an eight-year life span and has received commitments from 12 financial institutions and investment firms to date.

In June 2012 Singapore sovereign wealth investor Temasek bought a 5.5 per cent stake in Canada’s Ivanhoe mines for $426m, in an attemp to increase its exposure to Mongolia.

Rio Tinto-controlled Ivanhoe owns a 66 per cent stake in the huge Oyu Tolgio mine in Mongolia, which is expected to become one of the world’s largest sources of gold and copper once construction is completed.

Temasek submitted a filing to US regulators showing it owned 40.85 million shares in Ivanhoe worth about $425m.

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