Specialist PE funds offer hope to resources firms

In a changing MA world, where buyers are now more interested in finding value than paying a high price for growth, Australian resources companies are hoping to attract a new breed of suitor.

Private equity firms are well placed to fill the gap left by strategic buyers, said Mark Pistilli, managing partner at Clifford Chance in Sydney, who has a long track record of advising on cross border MA transactions between Australian sellers and Asian buyers.

Pistilli said the market for mining resources has been heading towards the bottom of the cycle since its peak in 2007. “At the top of the cycle the large...