Fortescue Metals Group Ltd has formed Fortescue Capital, headquartered in New York City, and named Robert Tichio as CEO and managing partner.
Fortescue Capital is a new green energy investment accelerator platform, and an integral next step in Fortescue’s commitment to deliver green energy projects and decarbonization investments, according to a news release.
Fortescue Energy CEO, Mark Hutchinson, said “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. Further, Fortescue has previously communicated its planned investment to decarbonize its Pilbara operations, and we see Fortescue Capital as an essential tool of engagement as we embark on both missions.”
Before joining Fortescue, Tichio spent over 17 years at Riverstone Holdings, a New York based private equity firm, that has seen total capital raised across a variety of private equity and related products exceed $42bn.
Tichio will be joined by a senior leadership team with a global background across sustainable infrastructure, climate technology, energy and private markets, which includes Nathan Craig, Rael McNally and Jennifer Zarrilli.
Each will serve as Managing Directors and be based in New York.
Tichio reports to Mark Hutchinson, CEO of Fortescue Energy, and the Operating Board of Fortescue Capital, which will initially include Robert Tichio, Jean Baderschneider, Mark Hutchinson and Mark Barnaba. Fortescue Capital is being developed as a fiduciary for third-party capital, which will complement the Energy and Metals internal corporate finance teams that already exist and work collaboratively to serve the shareholders of Fortescue.
Funding models will differ on a project-by-project basis as projects are formally approved by the Fortescue Board. The Company expects to hold equity stakes between 25 per cent and 50 per cent in each project, with third-party investors.
These potential capital partners include sovereign wealth funds, pension funds, endowments, insurance companies and ultra-high net worth family offices.
