Farallon raises $1.1b for Asia, Latin America special situations fund

The fund known as FASS III combines two vehicles, namely Farallon Asia Special Situations III and Farallon Asia Special Situations Master III. LPs were not disclosed, although the US-based firm typically manages equity capital for high net worth individuals, college endowments, charitable foundations, sovereign wealth funds and pension plans.

The raising follows $1.2 billion in LP commitments for FASS II, including significant support from US pension funds, and the 2010 closure of FASS I at $750 million. FASS III deployments are expected to be weighted primarily toward Asia, with a mandate including China, India, Japan and Australia.

"We take pride in providing flexible and strategic capital solutions to entrepreneurs, key families and business groups, even in a challenging business environment," Raymond Zage, CEO of Farallon Capital Asia, said in a statement. "We look forward to partnering with them to capitalize on the robust opportunity set that we see in Asia. We believe FASS III will benefit significantly from Farallon's established relationships, long history and experience in closing privately negotiated investments throughout multiple cycles in the region."

FASS III will target investments in transitional phases, including corporate recapitalizations and restructurings. These investments are expected to be made in in both equity and debt, and may extend to include spin-offs and companies involved in litigation events or strategic realignments.

Recent interest in this space includes a distressed opportunities partnership between KKR and two Chinese investment groups as well as a plan by TPG Capital to invest up to $3 billion in Indian distress and a $235 million special situations fundraise by Abax Global Capital that is expected to focus strongly on China. Fundraising by Asia special situation and distress-focused funds reached $3.1 billion last year, compared to $2.2 billion in 2013 and $1.8 billion in 2014.

Founded in 1986, Farallon claims about $20 billion in capital under management. It operates via offices in Singapore, Hong Kong, Japan, the US, the UK and Brazil.

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• Topics
• Fundraising
• Credit/Special Situations
• Restructuring
• Asia
• USA
• China
• India
• Japan
• Australia
• LatinAmerica