FG Capital Advisors employs a focused strategy of identifying underdeveloped battery metal assets in frontier markets. We invest capital to acquire these assets and execute a comprehensive plan for growth and value creation.
This includes strategic board restructuring, resource development such as exploration and securing offtake agreements, and strategic staffing. Our objective is to maximize asset potential and generate substantial returns. With a carefully crafted exit strategy, we aim to capitalize on enhanced asset value through a private sale or listing on a reputable exchange.
Fund Thesis
We invest in battery metals like nickel, manganese, copper, cobalt, tin and lithium, which are essential in the transition towards sustainable energy; each project is managed from acquisition to the point where the resource has been proven, with a holding period of 3-5 years.
The fund transforms distressed mining assets into profitable investments within the battery metals sector.
Our strategic approach not only contributes to the advancement of clean energy solutions but also generates substantial returns for investors and the developing countries where we operate.
I. Acquisition and Due Diligence
- Identify underdeveloped or undervalued assets with high potential
- Conduct thorough due diligence, including legal, financial, and technical assessments
II. Exploration and Resource Evaluation
- Comprehensive geological mapping, geochemical sampling, geophysical surveys, drilling, and trenching to delineate the resource
- Data analysis, interpretation, and resource modeling
- Compliance with industry standards such as NI 43-101 or JORC for reporting mineral resources and reserves
III. Enhancing Asset Value
- Assemble a strong board with mining, geology, and financial expertise to guide projects and optimize decision-making
- Secure offtake agreements with end-users, such as battery manufacturers or refineries, to guarantee a market for the mined resource upon project completion
- Obtain necessary permits and ensure regulatory compliance, minimizing potential delays or setbacks
IV. Resource Expansion and Optimization
- Further exploration to expand and upgrade the resource base, increasing the asset's overall value
- Optimize mine design and production plans to improve project economics and reduce operating costs
V. De-risking and Preparing for Exit
- Conduct advanced studies (e.g., pre-feasibility and feasibility studies) to demonstrate the project's technical and economic viability
- Establish strategic partnerships or joint ventures with experienced operators or industry leaders to increase credibility and enhance the asset's appeal to potential acquirers
- Actively engage with potential acquirers or investors, positioning the asset for a lucrative exit such as a strategic acquisition or a listing on prominent exchanges like the ASX or TSX
Invest With Us
Upon thoroughly examining the details provided on our webpage, should you develop an interest in contributing to our fund, we respectfully request that you complete the enclosed form.
Upon completion, you will secure immediate access to both our
Private Placement Memorandum and
Subscription Agreement, significant documents that offer comprehensive information on our fund's operation and subscription process.
Contact us
Thank you for your submissions. We invite you to review and sign our offering documents to finalize your investment.
Please try again later
FAQs
The following answers will provide you with a better understanding our investment approach.
-
What is the holding period for investments in FG Capital Advisors' funds?
The holding period for investments in our funds ranges between 3 to 5 years.
This time frame allows us to strategically develop and optimize the value of the assets, ensuring that they reach their full potential before we execute an exit strategy.
-
What are FGCA's fees for managing investments in the fund?
Our fee and expense structure is transparent and designed to prioritize both the growth of our investors' capital and the effective functioning of our funds.
Here's a breakdown:
Preferred Returns: Limited Partners are entitled to an annual non-compounded preferential return of 10%, calculated on their contributed capital, before any distributions to the General Partner. This return is computed and payable annually.
Catch-Up Provision: Once the Preferred Return has been distributed, a catch-up provision comes into effect for the benefit of the General Partner.
This continues until the General Partner has received an amount equal to 3% of the total profits of the fund, in addition to its share of the Preferred Return. During this phase, all of the fund's profits (100%) go to the General Partner.
Carried Interest: After the distribution of the Preferred Return and completion of the Catch-Up Provision, 30% of the remaining distributable profits is taken as Carried Interest by the General Partner. The rest, 70%, is shared among the Limited Partners.
Operational Expenditures: Each Limited Partner approves an annual spending cap of USD 100,000 for reasonable business-related expenses.
This ensures the fund operates efficiently and benefits all partners. Every quarter, Limited Partners receive a detailed breakdown of these operational costs.
Reasonable Business Expenses Defined: This encompasses:
a. Legal and Audit Expenses: Fees for legal counsel, auditors, and tax advisors.
b. Administrative Expenses: Office administration costs, salaries for non-investment staff, and essential technology infrastructure.
c. Regulatory Expenses: Costs related to compliance with regulatory bodies.
d. Due Diligence Expenses: Costs for the due diligence process on potential investments.
e. Investor Relations and Communications: Costs related to investor communication and meetings.
We recommend that all our investors refer to the complete FG Capital Advisors Fund agreement and consult their legal and financial advisors before making investment decisions.
-
How is the investment structure set up for investors?
Investors join our funds as Limited Partners (LPs), contributing capital to the fund. If necessary, the fund can structure entities to carry out investments and other relevant mergers and acquisitions transactions, providing flexibility in investment execution.
-
What is the exit strategy?
Our exit strategies vary depending on market conditions and the specific asset.
Potential exit options include selling our stake to strategic buyers, such as major mining companies, or through financial buyers, such as other private equity firms or institutional investors.
We may also consider an initial public offering (IPO) or a merger with another company as potential exit options.
-
How does FG Capital Advisors source and evaluate investment opportunities?
We utilize a combination of in-house research, industry networks, and partnerships to identify promising investment opportunities.
Each potential investment undergoes rigorous due diligence, encompassing legal, financial, and technical assessments to ensure its alignment with our investment criteria and value creation strategy.
Disclaimer
FG Capital Advisors operates in accordance with the United States Securities and Exchange Commission (SEC) regulations for private equity offerings, which include Regulation D (specifically Rules 504, 506(b), and 506(c)), Regulation A, and Regulation Crowdfunding.
Investments in private equity offerings, particularly early-stage projects, involve substantial risk, including the potential for loss of the entire investment. Prospective investors should carefully review all offering materials and consult with their own financial, legal, and tax advisors before making any investment decisions. FG Capital Advisors does not provide investment advice, and any statements made on this website or in any communications should not be construed as such. Nothing on this website constitutes an offer to sell or a solicitation of an offer to buy any securities. Offers can only be made through official offering documents that contain important information about risks, fees, and expenses.
Please note that past performance is not indicative of future results, and investing in private equity offerings carries inherent risks. FG Capital Advisors does not guarantee any specific outcomes or returns on investments.
If you are interested in our services, please apply directly through the appropriate form or schedule a consultation with us to receive professional guidance and begin your engagement.
