EMR Capital, a resources-focused private equity fund targeting investment from Asian capital markets, has secured its first seed capital to pour into resources projects in Australia and overseas.
The $100 million initial investment, from an undisclosed "Asia-based financial institution", will feed into an eventual $300 million fund, as EMR seeks to be at the front end of a growing trend of Australian funds seeking capital from China and other Asian countries.
EMR, which is chaired by mining industry veteran Owen Hegarty, announced two appointments to its investment committee on Thursday, former Macquarie Bank executive director Richard Crookes and former managing partner of CHAMP private equity David Jones.
Chief executive Jason Chang said the depth of experience on EMR's investment team would help set it apart.
"We've got great mining people in Australia . . . This model is based upon exporting Australian intellectual property," he said.
Mr Chang, who set up EMR last year, said demand for resources remained healthy in the region, particularly from fast-growing China and India, but he acknowledged raising funds was proving challenging, with investors remaining cautious amid a bumpy global economy.
"It's pretty hard to raise money in this environment," he said. "[But] no matter what people are saying, deals are still being done in a big way. They're just getting a bit more savvy in what they're doing."