Falconhead Raises $290M
By Luisa Beltran for Daily Deal
6/26/07 - New York private equity firm Falconhead Capital LLC has closed a pair of funds at a combined $290 million, it announced Tuesday, June 26.
One investment vehicle, Falconhead Capital Partners II, raised $255 million, while a discretionary co-investment fund totaled $35 million.
David Moross, Falconhead's founder, chairman and CEO, said the two pools are "contiguous." If a deal is too large for Fund II, the firm can dip into the discretionary fund, he said.
New York-based Falconhead raised its $214 million Fund I in May 2001. The California Public Employees' Retirement System was a major institutional backer, Moross said.
Falconhead began marketing in January 2006 with an aim to diversify Falconhead's backers beyond CalPERS, he said.
Other investors in the new funds, which closed June 22, include AXA Equitable Life Insurance Fund, New York City Pension Funds and the New York Common Fund. The new pools have roughly nine new institutional investors as well as endowments and family offices.
The funds were oversubscribed and, at $290 million, came in above Falconhead's target of $270 million, Moross said.
"There was significant interest in our funds, and we are delighted with the final result," he said.
John Robertshaw of Credit Suisse Group was placement agent. Barry Wolf of Weil, Gotshal & Manges LLP was counsel.
Fund I is 100% invested, and Falconhead's second fund is 20% invested, Moross said. The firm focuses on the consumer, leisure and lifestyle, sports and media sectors. It typically invests $35 million to $50 million of equity per transaction.