Indonesia's Falcon House closes maiden fund at $212m

Falcon House Fund I will focus on providing growth capital to mid-market firms. It will look for significant minority transactions and buyout opportunities with an emphasis on the consumer sector. The 10-year fund will make around eight investments with a transaction sweet spot in the $15-25 million range, targeting a minimum IRR of around 25%.

The vehicle - which held a $100 million first close in August last year - is said to have reached its $200 million initial target back in July but became oversubscribed after receiving additional commitments from an unnamed European institutional investor at the last minute.

IFC came in as an anchor investor in October last year, putting in $25 million. Overseas Private Investment Corporation (OPIC), Germany's DEG and the Netherland's FMO are also said to have made commitments, with development finance institutions accounting for around 30% of the total fund corpus, according to a source. 

The remaining commitments came from a mixture of institutional LPs, predominately US-based, including pension funds and funds-of-funds.

"Indonesia has turned a corner, the fundamentals are pretty good and there is huge gap in the mid-market for a fund making investments of $15-25 million," said a person familiar with the fundraise. "The rupiah has also weakened by 20% against the dollar, so it that works to your favor if you are sitting on a lot dry powder. Theoretically transactions have become 20% cheaper."

Falcon House Fund I is the second Indonesian vehicle focused on consumer-driven industries to close this year. In February, Capsquare Asia Partners also exceeded its $75 million target on its maiden fund raising $82.2 million.

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• Topics
• Southeast Asia
• Fundraising
• Indonesia
• Consumer
• Growth capital
• IFC
• Fundraising
• Falcon House