Global private equity investments in metals and mining surged during the second quarter to $4.69 billion across 12 deals, driven by the largest transaction in the sector in 15 years.

A proposed $4.57 billion buyout of aluminum producer Arconic Corp. by an investor group including Apollo Global Management Inc. and Irenic Capital Management LP accounted for nearly 97% of the total during the quarter, according to S&P Global Market Intelligence data.

The Apollo deal was second only to the largest-ever private equity transaction in the sector, which was in 2008 when Russian private equity firm Interros Co. bought 16.66% of nickel producer PJSC Mining and Metallurgical Co. Norilsk Nickel.

Arconic's go-private deal is expected to close in the second half of 2023, subject to shareholder approval and regulatory clearances. Under the terms of the deal, Arconic stockholders will receive $30 per share in cash. Irenic will own a minority stake in the company.

Apollo plans to invest significant capital in Arconic to secure the company's market edge, with focus on upgrades to technology and key machine centers.

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Year to date, the metals and mining industry pulled in $5.33 billion across 40 deals, more than twice the 2022 gross deal value of $2.47 billion across 120 deals.

From Jan. 1 to May 26, North America was the largest recipient of investment in the sector, at $4.99 billion. Investment in Asia-Pacific followed with $190.1 million.

Other major deals

A $300 million funding round for steel manufacturer Boston Electrometallurgical Corp. marks the second-largest transaction thus far in 2023. Investors in the round include venture capital firms BMW i Ventures Inc. and M12.

Excluding the big Arconic acquisition, only three of the recorded deals for the year to May 26 were valued at more than $100 million.