Mercuria taps Singapore fund manager Envysion for new source of finance

* First batch of investment to be up to $200 mln -Envysion CEO * Commodity traders seek funding as banks pull out of sector * Scope covers oil & gas, mining, renewables -Envysion adviser Jan 7 (Reuters) – Trading house Mercuria and Singapore-based asset manager Envysion Wealth Management have agreed to co-invest in mining and energy projects, as default-hit banks tighten their purse strings and leave commodities firms seeking other funding. The deal, signed on Wednesday, will see Mercuria present potential projects for investment to Envysion, founded and led by former Julius Baer banker Veronica Shim. Envysion will then decide whether to participate via a fund with a start-up amount of $100 million to $200 million. Such tie-ups between companies and fund managers may help fill a financing void left last year after major banks downscaled commodity operations amid a series of defaults by trading houses. “There used to be abundant funding for commodity traders but not anymore since major defaults like Hin Leong and ZenRock,” said George Liu, Mercuria’s Singapore-based business development manager. “On the other hand, private funds are sitting there looking for higher returns but they lack financing channels.” Singapore-based oil traders Hin Leong and ZenRock Commodities… continue reading

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