Perth-based investment house Argonaut has launched its Special Situations Fund, a private equity-style resources fund aiming to acquire significant stakes in mining companies led by Australia’s top industry talent. The fund, overseen by high-profile founder Eddie Rigg, will take up to a 20 per cent shareholding in mining companies or related infrastructure, logistics, and service businesses. Argonaut is a prominent Australian investment house known for its expertise in the resources sector, providing corporate advisory, stockbroking, and funds management services. The fund successfully completed its first close on July 29, raising $44 million ahead of its September 30 target, having opened to external investors earlier in July.
The fund employs a “partnership” model, investing between $5 million and $50 million into projects and working closely with management teams. The objective is to develop new mines, restart dormant operations, or significantly enhance production at existing projects. Mr Rigg specifically targets companies managed by “elite operators” such as former Northern Star chairman Bill Beament and Genesis Minerals executive chairman Raleigh Finlayson, believing they attract quality assets and personnel, which then captures investor interest. Argonaut has internally piloted this strategy for about five years, transforming an initial $6.5 million investment into $32 million across six deals, yielding a 390 per cent return. Past internal bets included Develop Global, Core Lithium, and various gold explorers.
While acknowledging that such extraordinary gains are unsustainable, Mr Rigg aims for returns exceeding 25 per cent annually. The fund, which can invest in listed and unlisted securities as well as direct assets, has strict investment criteria, avoiding challenging jurisdictions, poorly reputed management, or complex logistical assets. Argonaut expects its inaugural deal before year-end, with Mr Rigg already targeting two opportunities within Australia’s gold sector. This launch follows a robust year for Argonaut’s existing funds management arm, which saw its Global Gold Fund and Natural Resources Fund deliver returns of 76.6 per cent and 62.3 per cent respectively for the 2025-26 financial year, underscoring Argonaut’s strong performance in the resources investment space.
