Mittal becomes a major investor in RAB Capital

NRI steel magnate Lakshmi Mittal has become a major investor in RAB capital, a pan-European fund management and investment firm.

NRI steel magnate Lakshmi Mittal has become a major investor in RAB capital, a pan-European fund management and investment firm, with a singular primary focus on hedge funds.

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The Mittal family bought a 4.48 per cent stake in RAB after the company's two founders raised a combined 25 million pounds from selling shares.

The Mittals were among 14 buyers of the shares, but only one other party was named - Sofina, the Belgian company controlled by the Solvay family, which is one of Europe's wealthiest dynasties, bought a 5.5 per cent share.

Backing from such high profile investors represented a coup for RAB, which has made its name by being a prolific backer of small mining and energy stocks. It said two other billionaire family trusts were among yesterday's investors.

Co-founders Philip Richards and Michael Alen-Buckley each netted 12.5 million pounds by selling stakes of 6.22 per cent; they still retain interests of 31.1 per cent.

Richards, who was paid 5.4 million pounds as chief executive last year, said the disposals were part of RAB's progress to "becoming a real company."

"You make companies that are long lasting and self- sustaining by broadening them out in all senses," he said.

"We have been broadening the range of our funds and we are now broadening our share-holder base.

"Having a listed company in which 80 per cent was in the hands of two people was not sustainable in the long-term."

The Mittal and Solvay families are both investors in RAB funds.