Pamodzi Resources Fund 1 LLP (“PRF”) is a leading mining and resources private equity fund.  Managed by Pamodzi Resources Fund Advisors (Proprietary) Limited, PRF has US$1.3 billion available for investment in mining, natural resources and mine-to-market market infrastructure projects in sub-Saharan Africa until October 2010.  To date, US$209m of the fund has been invested.

PRF is backed by First Reserve Corporation, the oldest and largest private equity firm specializing in the energy industry, and AMCI Capital, a resources and energy focused private equity venture.

The fund prioritises projects from bankable stage and prefers acquiring a controlling equity interest. Upon concluding a transaction, we work with the company’s management to revitalise the business, making it more productive, more competitive, and more profitable.  This is achieved by streamlining operations, investing in future growth, and growing the top and bottom lines for the benefit of stakeholders.
Recently we entered into agreements with Harmony Gold Company Limited (“Harmony”) in terms of which certain uranium and gold assets of Randfontein Estates Limited, a wholly owned subsidiary of Harmony, were sold into a special purpose vehicle, Rand Uranium, for a purchase consideration of US$348 million. Harmony holds 40% of Rand Uranium in exchange for 60% of the issued share capital of Rand Uranium, the parties agreed that Harmony would receive US$209 million from PRF.

PRF paid the first tranche of US$40 million last November. The second and last tranche of approximately US$172 million, and was paid in April 2009.
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Our company’s post-transaction management routines with portfolio companies include:

• PRF works with management to determine the optimal capital structure to support a company’s business strategy.
• A well-conceived balance of debt and equity enables companies to minimize the inherent risks of leverage, to withstand economic downturns, and to invest for growth.
• Our investment professionals and investors typically serve on the boards of directors of our portfolio companies. They serve as proactive board members, providing strategic insights and access to financial, operational, and other resources.
• We are not distracted by the short-term perspectives of the financial markets. We are patient investors who focus on growing and improving businesses over the long term. | BACK...