The $159 billion asset management firm Oaktree Capital Management formed a joint venture with metals and mining executives Alan Kestenbaum and Gaurav Mehta to invest across metals, mining and natural resources sectors.
The platform, IR2 Holdings, is focused on investing in all parts of the capital structure. The strategy centers on the broader industrial value chain spanning mining, smelting and fabrication to value-added industrial products. The team partners with owners, managers and investors to leverage the expertise in evaluating opportunities globally, with a set focus on the Americas and Europe.
“We are thrilled to launch the IR2 platform alongside our partner, Oaktree, and feel the timing is ripe to be in the market for capital deployment,” said Kestenbaum. “IR2 stands for Industrial Revolution 2.”
This platform has a long-term investment horizon with optimal investment size of $100 million, and up to $1 billion (though smaller and larger transactions will be considered), offering management teams with a patient and supportive partner who can work alongside them.
“With this platform we intend to invest in businesses that are driving theses new sources and ways of producing industrial inputs to meet new standards in cost efficient ways,” Kestenbaum added. “Additionally with the weakening global macroeconomic backdrop on the heels of a global energy crisis, staggering inflation, emerging ESG strategies, liquidity scarcity, and growing risk of a prolonged period of economic slowdown, companies are reconsidering their operational and capital raising strategies.”
Kestenbaum was CEO of Canadian steel company Stelco since 2017 and has over three decades of experience in the metals and mining production, trading, distribution and finance business. Mehta brings with him experience from holding several international executive management roles at Ferroglobe PLC, a maker of advanced metallurgical products critical for industrial applications supporting the sustainable advancement of society.
“Oaktree is excited about this partnership with Alan and Gaurav, which stands to benefit from a number of emerging trends creating unique opportunities in the sector, such as the energy transition and a shift to local value chains,” said Brian Laibow, managing director and co-head of North America for Oaktree’s Global Opportunities strategy. “We believe Oaktree’s global platform will provide a strong foundation for the business moving forward.”
