Falcon targets $1.25bn for Fund V – exclusive

The Boston firm is seeking around $350m more than it raised for Strategic Partners IV which closed in January 2014.

Falcon Investment Advisors is seeking $1.25 billion for its latest mezzanine investment vehicle, PDI can reveal. The fund is the fifth in the series. 

The firm is set to reach a first close over the next month or so, PDI understands. 

Falcon closed the new fund’s predecessor, Falcon Strategic Partners IV on $909.7 million in January last year. The fund beat its $850 million target, the firm said at the time. 

Falcon provides mezzanine financing to lower mid-market companies with EBITDA of at least $10 million. The lender makes $10 million-$75 million investments per transaction but says it avoids real estate and start-ups. 

The firm’s junior debt focus encompasses subordinated debt with warrants, convertible debt, payment-in-kind preferred stock with warrants as well as non-control common equity when tied to mezzanine financing. 

Investor’s in Strategic Partners IV included Florida State Board of Administration, Maryland State Retirement and Pension System, Teachers Retirement System of Louisiana, The University of Toledo Foundation and Saskatchewan Municipal Employees’ Pension Plan, according to PDI Research & Analytics. 

Boston-based Falcon manages over $1.8 billion of capital and has invested with more than 60 companies.