Battery Metals

FGCA identifies and invests in undervalued battery metal assets. The fund executes a  plan to unlock their value through strategic initiatives, resource development, and staffing. Our goal is to maximize asset potential and achieve significant returns through strategic exits, such as private sales or public listings within 3 to 5 years.

Fund Thesis

We invest in battery metals like nickel, manganese, copper, cobalt, tin and lithium, which are essential in the transition towards sustainable energy; each project is managed from acquisition to the point where the resource has been proven, with a holding period of 3-5 years.


The fund transforms distressed mining assets into profitable investments within the battery metals sector.


Our strategic approach not only contributes to the advancement of clean energy solutions but also generates substantial returns for investors and the developing countries where we operate.

Fund Thesis Process Overview

I. Acquisition & Due Diligence

Duration: 3-6 Months

Key Activities:
Asset Identification Find underdeveloped or undervalued assets with high potential.
Due Diligence Perform legal, financial, and technical assessments.

II. Exploration & Resource Evaluation

Duration: 12-24 Months

Key Activities:
Fieldwork Geological mapping, sampling, geophysical surveys, drilling, trenching.
Data Analysis Interpretation and resource modeling.
Compliance Adhere to NI 43-101 or JORC standards for reporting.

III. Enhancing Asset Value

Duration: 6-12 Months

Key Activities:
Board Assembly Include experts in mining, geology, and finance.
Offtake Agreements Secure contracts with end-users.
Regulatory Compliance Obtain permits, minimize delays.

IV. Resource Expansion & Optimization

Duration: 12-18 Months

Key Activities:
Exploration Expand and upgrade the resource base.
Optimization Improve mine design and reduce operating costs.

V. De-risking & Exit Preparation

Duration: 6-12 Months

Key Activities:
Feasibility Studies Conduct advanced technical and economic analyses.
Partnerships Establish joint ventures with industry leaders.
Exit Strategy Engage potential acquirers or prepare for public listing.

Information about this investment opportunity is exclusively available to accredited investors. If you meet the criteria as defined by your jurisdiction—such as having a net worth exceeding $1 million (excluding your primary residence) or an annual income above $200,000 for individuals ($300,000 for joint income)—and are interested in investing in the fund, we encourage you to contact us. To learn more about this opportunity, please review the pitch deck available here. Should you qualify and wish to proceed, reach out to us directly to discuss the next steps.

FAQs

 The following answers will provide you with a better understanding our investment approach.

  • What is the holding period for investments in FG Capital Advisors' funds?

    The holding period for investments in our funds ranges between 3 to 5 years.


    This time frame allows us to strategically develop and optimize the value of the assets, ensuring that they reach their full potential before we execute an exit strategy.

  • What are FGCA's fees for managing investments in the fund?

    Our fee and expense structure is transparent and designed to prioritize both the growth of our investors' capital and the effective functioning of our funds. 


    Here's a breakdown:


    Preferred Returns: Limited Partners are entitled to an annual non-compounded preferential return of 10%, calculated on their contributed capital, before any distributions to the General Partner. This return is computed and payable annually.


    Catch-Up Provision: Once the Preferred Return has been distributed, a catch-up provision comes into effect for the benefit of the General Partner. 


    This continues until the General Partner has received an amount equal to 3% of the total profits of the fund, in addition to its share of the Preferred Return. During this phase, all of the fund's profits (100%) go to the General Partner.


    Carried Interest: After the distribution of the Preferred Return and completion of the Catch-Up Provision, 30% of the remaining distributable profits is taken as Carried Interest by the General Partner. The rest, 70%, is shared among the Limited Partners.


    Operational Expenditures: Each Limited Partner approves an annual spending cap of USD 100,000 for reasonable business-related expenses. 


    This ensures the fund operates efficiently and benefits all partners. Every quarter, Limited Partners receive a detailed breakdown of these operational costs.


    Reasonable Business Expenses Defined: This encompasses:


    a. Legal and Audit Expenses: Fees for legal counsel, auditors, and tax advisors.


    b. Administrative Expenses: Office administration costs, salaries for non-investment staff, and essential technology infrastructure.


    c. Regulatory Expenses: Costs related to compliance with regulatory bodies.


    d. Due Diligence Expenses: Costs for the due diligence process on potential investments.


    e. Investor Relations and Communications: Costs related to investor communication and meetings.


    We recommend that all our investors refer to the complete FG Capital Advisors Fund agreement and consult their legal and financial advisors before making investment decisions.



  • How is the investment structure set up for investors?

    Investors join our funds as Limited Partners (LPs), contributing capital to the fund. If necessary, the fund can structure entities to carry out investments and other relevant mergers and acquisitions transactions, providing flexibility in investment execution.

  • What is the exit strategy?

    Our exit strategies vary depending on market conditions and the specific asset. 


    Potential exit options include selling our stake to strategic buyers, such as major mining companies, or through financial buyers, such as other private equity firms or institutional investors. 


    We may also consider an initial public offering (IPO) or a merger with another company as potential exit options.

  • How does FG Capital Advisors source and evaluate investment opportunities?

    We utilize a combination of in-house research, industry networks, and partnerships to identify promising investment opportunities. 


    Each potential investment undergoes rigorous due diligence, encompassing legal, financial, and technical assessments to ensure its alignment with our investment criteria and value creation strategy.

Disclaimer

FG Capital Advisors operates in accordance with the United States Securities and Exchange Commission (SEC) regulations for private equity offerings, which include Regulation D (specifically Rules 504, 506(b), and 506(c)), Regulation A, and Regulation Crowdfunding.


Investments in private equity offerings, particularly early-stage projects, involve substantial risk, including the potential for loss of the entire investment. Prospective investors should carefully review all offering materials and consult with their own financial, legal, and tax advisors before making any investment decisions. FG Capital Advisors does not provide investment advice, and any statements made on this website or in any communications should not be construed as such. Nothing on this website constitutes an offer to sell or a solicitation of an offer to buy any securities. Offers can only be made through official offering documents that contain important information about risks, fees, and expenses.


Please note that past performance is not indicative of future results, and investing in private equity offerings carries inherent risks. FG Capital Advisors does not guarantee any specific outcomes or returns on investments.