Firm: Falcon Investment Advisors LLC
Fund: Falcon Strategic Partners III LP
Target: $800 million
Amount Raised: $729 million
Look for the firm to invest $10 million to $75 million of subordinated debt and equity in mid-sized companies to support their acquisitions, recapitalizations, buyouts and organic growth initiatives. Falcon Investment’s strategy centers on preserving capital, taking a board seat and forming a strong bond with the management team. The firm invests in companies with enterprise values of $30 million to $300 million that generate revenues of $50 million to $300 million and EBITDA of $5 million to $40 million.
As of early June, the firm had raised more than $660 million, according to a regulatory filing. Among Fund III’s backers, the
The firm, which was founded in 2000, has offices in Boston, Dallas and New York. Falcon Investment’s managing partners, Sandeep Alva and William Kennedy, previously worked at the mezzanine group at John Hancock Life Insurance.
According to September 2008 board documents from the New Mexico State Investment Council, the firm’s first fund is a $223 million 2002 vintage fund that, as of June 30, 2008, had generated a 41.6 percent gross IRR and a 2.5x investment multiple; Fund II, a $440 million 2005 vintage fund, had generated a 13.9 percent gross IRR and a 1.2x investment multiple.