Asset management firm Breakwall Capital and energy and commodities company Vitol have closed their second private credit fund focused on mining and critical minerals.
Valor Mining Credit Partners II is focused on making structured credit investments in mining and critical minerals companies. It primarily targets event-driven financing opportunities, including debt refinancing, acquisition financing and development capital.
The firms said the closing of the fund marks the full deployment of Breakwall and Vitol’s inaugural mining partnership, Valor Mining Credit Partners, which deployed approximately $470m (£355.9m) of capital in under six months.
Read more: Breakwall Capital raises $125m at first close for energy credit
Alongside the fund closing, the partnership has completed its inaugural investment, a $520m term loan financing to Mesabi Metallics Company, backed by the Essar Group. The credit facility will support the development of an American iron ore mine and pellet plant.
“Our continued partnership with Vitol reflects the strength of our collaboration and shared focus on identifying differentiated investment opportunities,” said Christopher Abbate, Jamie Brodsky, and Daniel Flannery the managing partners of Breakwall. “In mining and critical minerals, we see a significant opportunity to partner with growing companies by delivering innovative, tailored capital solutions to support the next generation of growth.”
The second fund also represents the fourth energy-focused credit partnership between Breakwall and Vitol. Overall, the Valor energy credit franchise has invested more than $2.1bn to support the upstream oil and gas, mining and critical minerals sectors.
Read more: 17Capital inks $7.5bn for NAV finance fund
“Our partnership with Breakwall now spans upstream, mining, and critical minerals,” Ben Marshall, head of the Americas at Vitol. “This rapid growth reflects the sustained demand for flexible, structured capital across the energy and natural resources value chain. We continue to see significant opportunity ahead and are well-positioned to build on this momentum together.”
Vinson & Elkins served as legal counsel to Vitol, while Latham & Watkins served as legal counsel to Breakwall in connection with the fund.
Read more: US private credit cracks open door for emerging markets
