Walter Energy’s bid of CAD11.50 for Western Coal of Canada values the 23 per cent equity stake in Western Coal held by funds advised by Audley Capital Advisors at some CAD730m.

Audley paid a CAD80m entry price approximately five years ago.

Audley says the dramatic change in Western Coal’s fortunes is likely to propel the European Opportunities Fund towards the top of the European event driven rankings (Eurohedge), a position it held for the two years to end-December 2007. 

Mining will continue to be a key theme for Audley Capital.

“We continue to see substantial investment opportunities in mining,” says Julian Treger, managing partner of Audley Capital. “In the past three years, European Opportunities, our activist private equity product, has primarily concentrated on this area and just as we have re-opened that fund to new investors, we have also chosen to launch Natural Resources specifically focused on long/short equity investment in this important sector.”

The new Natural Resources Fund formally begins trading on 1 December with some USD50m in seed assets expected under management. 

The Natural Resources Fund will hold a diversified portfolio of mining companies with class leading assets and, although not an activist fund, will seek to offer financial and corporate governance advice to those companies backed by the fund.

The fund will focus on commodities that have high supply deficits and/or a high level of strategic interest from China, India and Brazil.