TheBadPlaceyahoo news | JD Supra: Private Equity Investment in Mining
Private equity interest in mining has historically lagged behind other sectors because early‑stage exploration projects carry high speculative risk, limited scalability and jurisdictional uncertainty. Nevertheless, mining M&A activity surged dramatically in 2025—up 61 % worldwide and 139 % in North America—and Canada ranked third for aggregate deal value by industry. To gauge whether this heightened activity is translating into private‑equity capital, the authors examined a decade of Preqin data, breaking down total deal counts, values and the most common transaction structures across both the broader mining market and its sub‑industries.
The analysis shows a sharp upward trend in PE‑backed mining transactions. Globally, announced or completed deals peaked at US $18.48 billion in 2023 with nearly 100 deals, while the number of deals in mining‑related sub‑sectors (materials, software, industrial machinery) rose from 14 in 2015 to 46 in 2022. In Canada, 2024 saw a second‑highest annual value of US $2.19 billion across 17 deals, although activity dropped to 11 deals and US $0.55 billion in 2025. Buyout transactions dominate the market—global PE buyout value grew from US $4.68 billion in 2016 to US $16.81 billion in 2023—while venture‑capital‑style investments remain modest but growing, especially in the mid‑market range of US $20‑200 million. Add‑on deals have become the most frequent structure, with PIPEs and seed/Series A rounds also increasing in count, particularly in mining sub‑industries such as materials, software and industrial machinery.
Looking ahead, private‑equity “dry powder” stood at US $2.18 trillion in 2025, suggesting ample capital to redeploy as mining deal flow recovers. Although 2025 was an outlier of low volumes, the authors anticipate that deal counts and values will rebound to at least 2023 levels in 2026, driven by strong cash reserves and a projected 8 % rise in global mining capex over the next three years—particularly robust in Canada and the United States. Consequently, sub‑category investments in materials, software and industrial machinery are expected to expand further, with add‑on transactions remaining the preferred PE strategy, positioning Canada for continued attraction of both regional and European private‑equity investors.
Read more: https://www.jdsupra.com/legalnews/private-equity-investment-in-mining-8986128/
