Sprott to co-manage US$750 million South Korean private equity fund
TORONTO, Dec. 20, 2013 /CNW/ - Sprott Inc. (TSX: SII) ("Sprott") today announced that Sprott Consulting LP ("Sprott Consulting"), Sprott's private equity business unit, has been awarded the mandate to co-manage a 10-year US$375 million private equity fund (the "Fund") by South Korea's National Pension Service ("NPS") with a matching US$375 million co-investment commitment to be provided by the state-owned Korean Electrical Power Company ("KEPCO"), the largest electric utility in Korea. Sprott Consulting will serve as co-manager of the Fund along with Woori Asset Management ("Woori"), the asset manager of Korea's largest bank, Woori Financial Group. The mandate of the Fund will be to make private equity investments in the global natural resources and power sectors.
"We are pleased to have been awarded this mandate from one of the top pension funds in the world and look forward to partnering with NPS, KEPCO and Woori to make the Fund a success," said Peter Grosskopf, Chief Executive Officer of Sprott.
"Following our launch of an offshore mining fund with Zijin Mining Group Co., Ltd., this mandate marks Sprott's second entry into the growing Asian marketplace and solidifies our international reputation for expertise in natural resource investing," said Mr. Grosskopf. "We are committed to continuing to build our institutional client base as we seek undervalued opportunities in the resource sector."
NPS, along with other Korean-based institutional investors, will invest approximately US$375 million in the Fund with additional matching co-investment commitments of approximately $375 million to be provided by KEPCO. The transaction is subject to registration of the Fund with the Korean Financial Supervisory Service. Closing is anticipated to be completed in the first quarter of 2014.
About Sprott Inc.
Sprott Inc. is a leading independent asset manager dedicated to achieving superior returns for its clients over the long term. The Company currently operates through five business units: Sprott Asset Management LP, Sprott Private Wealth LP, Sprott Consulting LP, Sprott Resource Lending Corp. and Sprott U.S. Holdings Inc. Sprott Asset Management is the investment manager of the Sprott family of mutual funds and hedge funds and discretionary managed accounts; Sprott Private Wealth provides wealth management services to high net worth individuals; and Sprott Consulting provides management, administrative and consulting services to other companies. Sprott Resource Lending provides lending services to mining and energy sectors. Sprott U.S. Holdings Inc. includes Sprott Global Resource Investments Ltd, Sprott Asset Management USA Inc., and Resource Capital Investments Corporation. Sprott Inc. is headquartered in Toronto, Canada, and is listed on the Toronto Stock Exchange under the symbol "SII". For more information on Sprott Inc., please visit www.sprottinc.com.
About National Pension Service
South Korea's National Pension Service provides pension benefits for Korean residents. National Pension Service manages more than US$380 billion in assets, making it the third largest pension fund in the world.
KEPCO is the largest electric utility in South Korea, involved in the generation, transmission and distribution of electric power. KEPCO is responsible for 93% of all of South Korea's electricity generation. In addition, KEPCO operates and develops electric power projects in South Korea and worldwide.
About Woori Asset Management
Woori Asset Management is the asset management subsidiary of Woori Financial Group, the largest bank in South Korea, and is a leading asset manager in South Korea with approximately US$18.6 billion of assets under management.
This release contains "forward-looking statements" which reflect the current expectations of Sprott Inc. These statements reflect management's current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements in this press release include, but are not limited to, statements with respect to Sprott Consulting LP's mandate to manage the Fund. Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions, including with respect to the execution of final and binding agreements amongst the parties and registration of the Fund with the Korean Financial Supervisory Service. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements including, without limitation, whether the Fund receives final and binding approval and those listed under the heading "Risk Factors" in Sprott's annual information form dated March 26, 2013. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements contained in this release. Although the forward-looking statements contained in this release are based upon what Sprott believes to be reasonable assumptions, management cannot assure investors that actual results, performance or achievements will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and Sprott does not assume any obligation to update or revise them to reflect new events or circumstances, except as required by law.
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