Falcon House closes oversubscribed Fund II on $400m

The Singapore-headquartered firm, which targeted $300m for its second fund and closed early this week, focuses on mid-market consumer companies in Indonesia.

Indonesia-focused firm Falcon House Partners has held a final close on its second vehicle Falcon House Partners II on its $400 million hard-cap.

Fund II, which launched in late 2015, with a target size of $300 million, was oversubscribed in the final close, with total investor interest significantly exceeding the hard-cap, according to a source with knowledge of the fundraising.

New investors in Fund II include a mix of marquee US university endowments and charitable foundations, global funds of funds, and development finance institutions, the source added.

Falcon House also secured a $20 million commitment from Dutch development bank FMO and $16 million from German investment firm DEG for the vehicle. Additionally, the World Bank’s investment arm International Finance Corporation, also an investor in Falcon House’s first fund, is said to have committed $25 million, as previously reported by Private Equity International.

The source noted that while the fundraising environment in Indonesia is generally difficult, the policies of the current government as well as growing investors’ interest in the country have been helpful.

“Indonesia remains a unique story to tell in the world of emerging markets,” commented the source.

Fund II will continue to follow the investment strategy Falcon House employed for its first fund, targeting a mix of control and minority growth investments in mid-market Indonesian companies. The firm’s debut vehicle, Falcon House Partners Fund I, closed on $212.4 million in October 2013 and is fully invested.

Falcon House declined to comment on fundraising.