Middlemarch Capital Partners Closes $17.5M of $20M Gold Financing Fund
Investment strategy exploits a global demand for gold and the ability to consistently source gold at advantaged pricing
NEW YORK, June 4, 2019 /PRNewswire/ -- Middlemarch Capital Partners, the registered investment advisor associated with merchant bank Middlemarch Partners, seeks to upsize its MCP Gold LP ("MCP Gold") Fund, a Special Purpose Vehicle (SPV) that finances the purchase and transport of gold from South America for sale in the Middle East, from its current assets under management of $17.5M to $20M.
The Principals of Middlemarch Partners began investing in a related gold strategy in 2013 and began offering Limited Partners the opportunity to invest in MCP Gold in 2017. The fund has since inception consistently produced in excess of 20% net returns for its Limited Partners and offers the option of quarterly redemptions to its investors. The fund has a hard cap at $20M, and Middlemarch Capital Partners is currently accepting additional Limited Partners who wish to invest in MCP Gold.
MCP Gold finances the purchases made by a commodities trading firm that buys gold in South America concurrently with a forward contract that has been executed with one of its refining partners in the Middle East. MCP Gold does not speculate on the long-term price of gold as a commodity but rather facilitates trading between regional sellers and institutional buyers of gold. "We believe gold has a very material place in the global economy, and our role as financial services investors is to finance commodities trading strategies. This investment is structured to limit our exposure to gold price volatility," said Sasha Grutman, a co-founder of Middlemarch Capital Partners.
This investment strategy exploits a global demand for gold and the ability to source relatively small quantities of gold at advantaged pricing. "Our operating partner has established long-standing relationships with gold sellers in South America who value consistent buying behavior and a professional approach to buying gold," said Demetris Papademetriou, a co-founder of Middlemarch Capital Partners. "We are able to facilitate a consistent gold supply from licensed gold mining operations to buyers in the Middle East who are supplying significant amounts of gold to Asia."
MCP Gold is currently open to institutional investors and qualified individual investors.
ABOUT MIDDLEMARCH CAPITAL PARTNERS
Middlemarch Capital Partners is a registered investment advisor associated with New York-based merchant bank Middlemarch Partners. Middlemarch Capital Partners is focused on the alternative finance, payments, trade finance, and financial technology sectors where companies require sophisticated equity and debt investment solutions. The firm designs special purpose investment vehicles that deploy investment capital in venture and growth capital transactions ranging from $5 to $25 million. Its Limited Partners are institutional investors and accredited individual investors. The firm can serve as an independent sponsor of transactions but frequently co-invests in transactions alongside blue-chip lead sponsors that are sourced by merchant bank Middlemarch Partners on behalf of its merchant banking clients. For more information about Middlemarch Capital Partners, LLC please visit www.middlemarchllc.com.
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SOURCE Middlemarch Capital Partners
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