Fortescue Metals Group will establish a New York-based capital office, Fortescue Capital, in a move designed to attract broader outside funding to its green energy projects.
The iron ore miner announced the formation of the green energy-focused investment platform this afternoon, labelling it an “integral next step” in the company’s commitment to deliver green energy projects and incentivise decarbonisation.
Fortescue’s capital branch is being established to complement the company’s internal energy and metals corporate finance teams, with a focus on third-party capital targeting sovereign wealth funds, pension funds, endowments, insurance companies and ultra-high net worth investors.
Fortescue said funding models would differ from project to project, but that the company expected to hold equity stakes between 25 and 50 per cent in each project – alongside third-party investors.
“Fortescue is taking its global pipeline of green hydrogen and green ammonia projects to final investment decision, and in doing so has communicated our intention and desire to bring additional equity investors onboard,” he said.
“Further, Fortescue has previously communicated its planned investment to decarbonise its Pilbara operations, and we see Fortescue Capital as an essential tool of engagement as we embark on both missions.”
New York-based Robert Tichio has been appointed chief executive and managing partner of Fortescue Capital, off the back of a 17-year career at private equity firm Riverstone Holdings.
Fortescue said Riverstone had raised more than US$42 billion of capital across a variety of private equity and related products over that time.
“He brings with him decades of invaluable experience and will lead a team with deep experience and broad expertise in capital formation and investment management in the energy industry.”
Fortescue Capital’s senior leadership team will include Nathan Craig, Rael McNally and Jennifer Zarrilli – all of whom will take up roles as US-based managing directors.
Mr Craig has had a lengthy career as managing director of investment banking at JPMorgan Chase & Co, according to LinkedIn, while Mr McNally has experience as director of equity private markets – climate infrastructure and renewable energy at BlackRock.