Falcon House beats $300m target for Fund II – Exclusive

The Indonesia-focused firm has received strong support from existing investors and plans to hold a final close by year end.

Mid-market firm Falcon House Partners has secured more than $300 million for its second vehicle, Falcon House Partners Indonesia Fund II, and will wrap up fundraising by the end of the year, Private Equity International has learned.

The firm, which specialises in consumer-related businesses in Indonesia, launched its second fund in the fourth quarter of 2015 with a $300 million target.

A source close to the firm said Fund II has a high re-up rate and also received new commitments from high-quality institutional investors. Investors in Fund II include Dutch development bank FMO, which committed $20 million, as well as German investment firm DEG, which committed $16 million, according to FMO and DEG. The International Finance Corporation, also an investor in Falcon House’s first fund, is considering a commitment of $25 million, it said in a filing on its website.

Campbell Lutyens serves as placement agent for the fund.

Its predecessor fund and the firm’s debut vehicle, Falcon House Partners Indonesia Fund I, closed on $212.4 million in October 2013 and is fully invested, the source added.

That fund mainly invested in consumer-driven businesses in Indonesia, including retail, food products, personal care, and healthcare. Investors in Fund I include the Swiss Investment Fund for Emerging Markets, the Overseas Private Investment Organisation, and Hong Kong-based fund of fund manager Emerald Hill Capital Partners, according to PEI data.

As part of the firm’s expansion plans, two senior hires were added to the Singapore office this month. Alexander McCloskey, a former partner at Emerald Hill Capital Partners, was appointed head of investor relations and business development. Henri Goliono, previously a partner at Headland Capital Management in charge of south-east Asia, was named head of portfolio company management.

Falcon House is one of the first private equity firms that entered the Indonesian market in 2011 looking to capitalise on the country’s rising middle class. The firm was founded by Glenn Yusuf, previously chairman of the Indonesian Banking Rescue Agency, former Lehman Brothers banker Brian O’Connor, and Samir Soota, a former managing director of EMP-Daiwa Capital Asia.

Falcon House declined to comment on fundraising.