Falcon Sets $850M Goal For Fund IV

Firm: Falcon Investment Advisors

Fund: Falcon Strategic Partners IV LP

Target: $850 Million

Strategy: Subordinated Debt, Mezzanine and Equity Investments

Key Executives: Sandeep Alva and William Kennedy Jr., Managing Partners

The firm typically makes investments of between $10 million and $75 million.

Fund IV is the successor fund to Fund III, which raised $729 million in late 2009. Known investors in that fund include the Los Angeles City Employees Retirement System, the Maryland Sate Retirement and Pension System, the New Mexico State Investment Council, the New York State Common Retirement Fund, the Florida Board of Administration and the Louisiana Teachers’ Retirement System.

According to March 2012 data from the New Mexico State Investment Council, Fund III was so far returning a 1.3x return multiple and a 18 percent IRR. Fund II, a 2005-vintage fund that raised $440 million, was generating a 1.4x return multiple and an 8 percent IRR, according to the same data. No data was available for Falcon’s debut fund.

Falcon has a mini-specialty in media and film financing. Among the firm’s most recent investments was a $30 million loan in June 2012 to Relativity Media, a film and television production firm that produced such films as “Mirror Mirror” starting Julia Roberts and “The Fighter” starting Mark Wahlberg. The firm also has provided financing to at least two other film production companies, Legendary Pictures and Village Roadshow.

The firm was co-founded in 2000 by managing partners Sandeep Alva and William Kennedy Jr. With offices in Boston and New York, Falcon Investment Advisors manages more than $1 billion in capital, according to the firm’s Web site.