JAKARTA (TheInsiderStories) - Jakarta-based Falcon House Partners Fund II, L.P. targets to raise $300 million from international investors, including the World Bank’s arm International Finance Corporation (IFC). The funds will be invested in Indonesia’s growth-oriented medium-sized enterprises.
According to an IFC filing, the development finance institution (DFI) is considering an investment of up to $25 million, capped at 20 percent of the total fund. It made a commitment of the same size to Falcon House Fund I, which closed in October 2013 at $212 million.
IFC via the development finance institution (DFI) is considering an investment of up to $25 million, capped at 20 per cent of the total fund. It made a commitment of the same size to Falcon House Fund I, which closed in October 2013 at $212 million.
Falcon House, has reached a final close on its maiden fund at $212.4 million, exceeding its original $200 million target, nearly two years after launch. Falcon House Fund I focused on providing growth capital to mid-market firms. The 10-year fund make around eight investments with a transaction sweet spot in the $15-25 million range.
Private equity groups are keenly eyeing assets in Indonesia, with a phalanx of companies that use the investment strategy intending to pour in as much as $3 billion between them this year.
Patrick Waluyo, founder of Northstar Capital said his company plan to invest up to $1 billion in two years period, $500 million by KKR & Company and $400 million by PT Saratoga Investama Sedaya Tbk (IDX: SRTG) and Ancora Capital managing director Hendrik Susanto said his group aimed to increase its total funds to $10 billion within five years.
Private equity companies have identified Indonesia’s growing economy as the factor that is attracting them to the country. Overseas, private equity companies have been most active when credit is easily available and companies perceived to be poorly managed are available to acquire.
Falcon House found in 2011 by Glenn M.S. Yusuf, a former chairman of the Indonesian Bank Restructuring Agency (IBRA) along with founding partners Brian O’Connor and Samir Soota.
The private equity and venture capital firm specializes in growth and medium-sized companies in consumer industry including retail, food products, personal care products, and health care.
KKR, previously known as Kohlberg Kravis Roberts, is a US buyout firm. KKR has hired Ridha Wirakusumah, the president director of PT Bank Internasional Indonesia Tbk (IDX: BNII) until 2010, as the director of the company. Ridha said that Indonesian companies needed funds to develop the country’s equity market.